Housing Loan: A boom and bust

Now with the Rs.40,000 crores housing loan scam involving a leading housing finance company and 12 other private-public housing finance company, India seeks an explanation from the agencies. Loans are granted to the builders (most cases large builders) by flaunting the norms set by the RBI and National Housing Banks. But we all know these are routine processes, which clearly requires a hand shake between the builders and loan company. In this case a huge chunk of loan meant for high and middle income group (now with property prices this definition needs re look!) was diverted to the large corporates. These are known names and should you all care to go through the business section of news paper you would be able to understand who are these fallen empires.

The current property prices sky rockets beyond imagination of the salaried class and calculations of little smart house buyers. In most of the cases getting retail housing loan has become tricky and housing finance companies arbitarily chooses to allocate the finances to the projects it likes most (local managers recommends) all settled through the greedy builders and property brokers. Within no time they would advice from where you can get the amount which is always cooked up for the banks. In all fake documents given by the builders, reviewed by housing banks and approved by the registrars which facilitates the current boom in the market.

Now with such a kind funding by the housing banks (though a cheap rate given by National housing Bank) to the builders and their project through the poor house buyers in middle, crushes the finance load on the end users. It easily takes burden off the builders to avail the funding from other sources. We all know who is supposed to be financing the property markets. Not the genuine investors!!

This time a bust in the market would be in place if the relevant investigation targets the financial institutions and real estate firms. May be a call for regulator would become more sound for the sector where self regulation has failed and non existent. Much to the waiting reforms required to root out the malice of speculation in the trade which is throwing the house buyers out of the property markets. Suddenly the real estate firms and finance companies are been liquidated by these buyers who could not wait longer for their dream home and are caught in the web laid by the smart players in housing market. Till the bust happens within next few months, buyers would be advised to take extra caution in dealing in housing market.

End of Industrialization in West and Weak Natural Resource base

The present economic crisis in the west looks like failure of market to move ahead without persistent support of the state. The North block countries including US, Canada and Europe faces severe resource crunch owning to high consumption and low availability of natural resources like fossil fuel. The desire of the west to dominate the world economy slows down as the developing countries like, China, India, Brazil, Iran and Countries South Asia emerge to utilize the world resources. No more the fight to capture the resources has done severe damage to industrialization as it has happened in 1980s to late 1990s. The disturbances in middle east including Afghanistan and Iraq poses the serious danger to the stability of north blocks resource utilization.

The paced industrial revolution led by the European nations in early 17th Century till 1960s have recently lost ground to recover owning to little access to resources of the developing or the least developed nations. While the these two group of nations are busy in utilizing the resources for their own consumption and trade or they are prone to civil wars disturbing the supply of the raw and finished material to the markets in developed nations.

The crisis riddled with controlled market economies of Europe and America which in late 1980s sought to liberalize the economies of the world to have better access to the resources and treating others as potential markets. The economic power of the worlds leading countries would hardly sustain for next two decade given the growth enjoyed by the countries in the Indian Continent and South East Asia. When the nations in the North decided to give up manufacturing and rely on the service based economies cities would tend to have depressive effect on the national economies. Recently cities in the west hardly support the manufacturing pool in US economies, its trade and commerce which so far eluded the employment downfall is now facing serious threat from the outsourcing. They need to diversify and strengthen the production in order to bail out the cities.

Series of the bailout packages for the industries are utilized to strengthen the units already ineffective to sustain beyond the desired period before government treasurership bows out. The going back to people centric industrial model is inevitable to resist given the high unemployment in the developed nations. The demographic transition of the nations in economic crisis from high proportion of aged and low young working group leaves the production line high and dry relying totally on the capital investments. This would have poor distribution effect and increased debt crises in the western nations.

World would not be in the position to bail out the nations and would be mute spectator in case threat of war is imposed by those who would like to sustain economy at any cost. Till they go back to the starting point from it all begun North cannot expect any concession from the South.

Hindustan Times : Audio Video

Asian Population Association 1st Conference concludes at Delhi (16th-20 October2010)

Hindustan Times : Audio Video

Media, Politicians and Business Barons - Bleeding People of India

We are again in the midst of the political-media and Business storm waged by each other against the another. Astonishing fight indeed. No matter what is happening in Asiad or Collapsing of building the actors mentioned here are busy in condemning each other. Happy and eager to take the lime light leaves the urban and rural India bleeding in the midst of the crisis.

With the moral loss of stake these actors would take no turn in pitching each other against the common men till someone in the Jungles strikes forces to think about the people. But even after the gruesome killing in Central India and sensitive Kashmir issue we are busy again in dealing with one murky issue over other. The lip service providers in the system including three actors cited here provides solace to citizens in every disaster like they have lost their own brethren. No matter they have not forgotten 26/11 and should never forget which have taken majority toll on this particular class.

However, India as it stands today have its apathy with the system mentioned which is repeatedly pained at this cat fight resulting to lots of noise without real outcome. Majority would feel they all would be together tomorrow still the next controversies begun.

Who is watching Corruption in Urban India ?

As day after day country like India sees the visual images of corruption happening in public arena and wealth massed by who is who of well to do personals we think regressively. What a joke on a system that has all the provision in the law to protect the interest of the public? We have agencies looking after the interest (Is it really?) namely the Central Vigilance Commission, IB, CBI and CAG. Each of these agencies support the government in power or those closer to power to move ahead without inhibition to think twice about the public money. The media moves fast enough to reach their news rooms daily and 25 x 7 makes them run after or breaking news rather then spilling the beans.

If at its not high profile nobody is interested in pity theft or corruption of below 1 crore its beyond their dignified image. As being closer to Delhi, by actively following the development, its pathetic to imagine the sleeplessness and over reaction in recent Laxminagar building collapse to the quell the anger by taking the foolish action like getting residents of more than 30 such building out of their homes in a day. If they would have taken this action against the concerned builders or contractors or made some alternate arrangements these would have brought some solace and peace in the minds of the people concerned.

But then why blame Delhi, the whole of urban India is repeatedly living in the these situations, comparable to retarded thinking of the educated, suave and elites towards the pressing the buzzer of 'danger' when they are suffering and leaving the rest of the citizens of India here in Delhi 'Out in Cold'.