Mumbai Terror Attack

just a few days back there had been an incident in India at the Taj Mahal Hotel in Mumbai where around 200 people were killed. and it is just four days since things have cooled down and every one has just put the erase memory mode on. 

there have been many rumours floating and one of the craziest rumour is that the ruling UPA Government of India is the one that is the most the benefit from the incident. 

The Economic crisis is Raging across the world and India is likely to feel the pinch in the coming few months. so if there is some attack of such dastardly magnitude then the whole public interest would be diverted from the economic crisis and absurd Economic policies to TERRORISM. 

Funny policy 1.
when the Price of Crude went up to around USD 150 the Petrochemical companies hiked the price to 56 Indian Rupees per liter. Now the price of Crude is around 47 USD and still the Price of petrol is 56 Indian Rupees. This has never become an issue with any one and no one is asking the sensibility of the Government policy. (Policy is never to bridge the gap between real value and market value). some few have asked and the government has said (Sarcasm involved) the petroleum companies were making enough profit and hence they will have to make more than enough profit.

policy # 2

There was a government statement that to encourage the real estate industry, housing loans would be given at low interest rates. The Government of India has not learnt any thing from the housing bubble of the US. instead of letting the market correct itself by letting the market become sluggish for the real estate companies it wants to boost sales by reducing the interest rates and once the consumer is stuck in the mortgage the interest rates would be floating and the consumer is likely to get stuck in the rot and when the bubble burst the consumer goes bust. 

The Realtors would sell and be out and when the bubble burst the banks will be left with over valued houses and the home owner would be left with an over valued Mortgage. Strange policies. Any one with commonsense would say that the policy is being made by some very intelligent people very unintelligently. 

Policy #3 

Cutting interest rates, any economist would say that the bank interest rate should at least cover the inflation of the economy. The inflation of the economy was the highest for the last 10 years that is, it was at around 13 %, the bank deposits interest is 9.5 %. so if an indian wants to park his/her funds for his retirement the government of india is telling its people ---- Please gamble and park your retirement money in the stock exchange. which was in the past over valued. (frankly there was no sense in valuation of the stock. take any model - return on investment, nett asset value, take any model and every model except the " highly optimistic capital gain model" would say each and every stock is over valued) and this is the instituion where the Government of India wants its people to park their funds. since bank interest does not even cover the inflation loss. 

The Indian Economy is neither completly free neither is it fully controlled, this infact is a very good decision to have a partly controlled economy. but the spirit of this decision was to have a partly controlled economy to prevent exploitation of the common man by the people who have the capital to turn the economy in their favour. however the policy now is to interevene and use this policy in contravention of its true spirit. 

Think - was this a randomn attack or was the information fully and completly available and the government played it so that the common mans eyes could be turned away from what the actual crisis is. 

The Question is how does it affect the hotelier......... good one - think and you will know ........... tourism is being made the scapegoat ...... dont you see empty lobbies and dining halls. .............. all comments are welcome