With The Fall In Oil Prices, The Gulf Economies Now Appear Vulnerable

According to few oil analysts the Gulf countries are not immune to the overall problems in financial system. If they get below $60 a barrel, some of these countries will suffer. This is evident to an extent when the benchmark indexes in Qatar and Oman fell more than 8 percent Sunday. Kuwait stocks fell 4.4 percent and Saudi Arabia‘s main index, which fell 8.7 percent Saturday, fell an additional 1.7 percent Sunday.

Stocks in the Gulf region are off about 40 percent so far this year, in line with the decline in the Standard & Poor’s 500-stock index on Wall Street and the 45 percent decline in the Dow Jones Euro Stoxx 600 index.

On Saturday, finance ministers from the Gulf Cooperation Council and central bankers met in Riyadh, the Saudi capital, to discuss a more coordinated response to the crisis. In their communiqué, officials “underlined their confidence in the stability of the monetary system in their countries,” and said their economies should continue to grow.

But they also expressed concern that the downturn in the world economy would hit home. “We should all work to avoid the negative effects and reduce their impact on our economies by coordinating policies and measures,” the Saudi finance minister, Ibrahim al-Assaf, told the Saudi Press Agency. In addition to Saudi Arabia, the Gulf Cooperation Council includes Bahrain, Qatar, Kuwait, Oman and United Arab Emirates.

Globally, banks have posted losses and write-downs totaling $681 billion since the start of the credit crisis, according to Bloomberg News. But so far the damage has been limited in the Middle East. Any big ratcheting up of losses in the region could require governments to bail out their own lenders and dash hopes that sovereign wealth funds from the region would be able to help rescue troubled institutions in the West. Gulf Bank‘s chief executive, Louis Myers, said the loss would have “no major effects on the soundness of the bank’s financial position, and will not affect its ability to continue business.”

KPMG International, the accounting firm, warned last week that financial fraud in the region could run into the billions of dollars a year. Colin Lobo, a KPMG partner said the financial crisis was creating an environment “where the risk of fraud will increase as businesses come under pressure to show results. Likewise, individuals will also be tempted where costs are rising and income levels are flat.”

The Dragon Lady-Empress of China !!

One of the most powerful women in Chinese history was Cixi. She controlled China for more than 40 years in the late 1800s.Cixi was so ruthless, heartless, cruel and greedy tyrant that people called her the Dragon Lady. In western countries such as Great Britain and the Unites states, Cixi was also known as the Empress Dowager. But in reality she wasn’t an empress; she was the mother of the emperor’s only son. After her husband’s death , she raised her son to rule China. She still had power when her son was old enough to rule but himself. After his death, the Dragon lady made sure her 4yr old nephew becomes the nest emperor, which was against the law but she helped him too.

She lived in a group of palace buildings called theForbidden City, within the city of Beijing. Only the servants who lived in the palace saw Cixi. She used to speak to all her visitors from a large red throne shaped like a dragon that was hidden behind a silk screen. Her every order ended with “Hear and obey”. (Source: encyclopedia).In 1908, when this Dragon Lady was dying, she had her nephew, the emperor poisoned. She wanted to make sure that he died first and thus would never rule without her.

 

The lady ruled China for many decades. The nation was fairly stable under her influence, but the government was dishonest and didn’t take steps in favor of the people and their benefits. Empress Dowager Cixi was largely conservative and represented the conservative political faction at court. The interesting and strange fact about the Dragon lady was she used to wear gold shields on her very long fingernails to keep them from breaking. Moreover, the name by which she is most frequently known is simply Cixi, which is neither her birth name nor family name. It is an honorific name given to her in 1861 after her son ascended the throne. Empress Dowager Cixi’s name at birth is not known, although a recent book published by one of Cixi’s brother’s descendants seems to suggest that it was Xingzhen. (Source: Wikipedia).All writings show that she was certainly a bright, ambitious and powerful woman in history, but her life was anything but a fairy tale.

If you are interested to know more about Cixi and her history; Read more….

Posted by:Jaspreet

Most expensive painting-price tag $140 million

We all know buying and selling paintings is no less than any other passion. Hundreds or thousands — even millions — of dollars are spent every year by art patrons who are eager to become the owners of the world’s most expensive and sought-after paintings. There are many famous artists who still command the highest prices but what makes these paintings so special.The picture is a 4′ x 8′ composition, comprising oil, enamel and aluminum paint on fiberboard, is a nest-like tangle of browns, yellows and greys. Unconfirmed rumors that continue to buzz the art world now place this painting at the top of the list(temporarily). If the reports are correct, entertainment mogul David Geffen sold it to Mexican financier David Martinez in November 2006, who paid $140 million for this signature work by Jackson Pollock (No. 5, 1948 ), making it the world’s most expensive painting. With the fluctuating market and rising prices that fine art fetches these days, one has to be quick to stay on top of this game. Action-painter Jackson Pollock’s “No.5 1948” took the cake as most expensive painting sold till date. It was arguably his greatest masterwork, the most vivid expression of the painter’s unique style.

 

The details of this painting No. 5, 1948 are as:

 

Artist: Jackson Pollock (1912-56).
Year: 1948
Year of Sale: 2006
Sale Price: $140 million
Seller: David Geffen
Buyer: David Martinez
Auction house: Private sale

 

Posted By: Jaspreet

 

Caves: as second homes !!!

 

I have always thought of spending a day in the cave….walking through its lanes – turned and twisted- as we watch in the movies.And if I tell you that that there’s a place where caves are the hottest real estate trend, are you going to believe me. Sounds incredible..it did to me as well when I came across this fact. I had never imagined that people actually live in Caves!!!! The stereotypical image of a “cave” is dark hole in the ground with water leaking from the ceiling and where only darkness prevails. This simply is not the case in Spain where caves are very economical dwellings with electricity and water connections, fantastic layouts, beautiful rooms and design ideas.

 

In Andalusia of Spain,a town named Gaudix provides well furnished caves for people to stay.The Moorswere the first people to dig out the soft rock of the cliffs to make dwellings in caves, during the muslim occupation of Spain which ended in 1492. Today the area known as “Barrio Santiago” is dotted with some two thousand cave houses. The cave houses’ thick walls ensure the house is cosy in winter and cool in summer, maintaining room temperatures at 19 degrees Celsius all year long. The way of life and the culture that goes with them in this corner of Andalusia is very welcoming and desirable. This unique lifestyle in an almost undiscovered area of Spain.

 

You can check the interiors of cave homes and further details athttp://www.travelinginspain.com/guadix.htm

 

Posted by: Jaspreet 

Daily Dump – Makes you a Better Person Instantly !!

Daily Dump is a new start-up (Bangalore, Karnataka, India), which offers its consumers with a simple and easy solution for reducing landfill waste: composting. Daily Dump offers a range of products and services that help compost at home. It also provides solutions and knowledge through an open source platform. The Daily Dump offers an array of decorative composting pots and vessels with varied shapes and sizes. These can be used in the home and kitchen to manage organic waste and convert it to useful high-quality compost. And the special feature that adds to it is that it supports you with flexible full range service plans to achieve your goal of becoming a green citizen.

The compositing containers purchased on the website. Apart from vessels, the product range also includes spoons, spatulas and other necessities. The website is simple to browse and understand as it clearly puts upfront the categories of items which can and cannot be compost. On this site you’ll find information on the products, plus free material on everything you need to start your own composting project, faster than you can say ‘biodegradable’.

Currently the Daily Dump limits itself to household composting, but the company has plans for expanding its operations for businesses and larger homes. This Daily Dump stands as an inspiration and encourages others to invest in composting— that should make easy for the people to enter into the “Green Revolution”. Their commitment to such a fundamental cause – and moving ahead to create a zero waste home should be the hallmark of every nation. The gleam of hope is that if we appreciate the power of green and can distinguish the wrong thing from the right, we can create a better place for our family and neighbors which will ultimately contribute to the society. Doing the right thing requires less management, not more. So, what makes you wait—Simply, do it!! After all, “Small steps will lead to a great beginning”

It says : If you are too busy or don’t like the idea of turning a waste pile – opting for the Daily Dump service plan is just the thing for you.Check Daily Dump at: http://dailydump.org/

Posted by: Jaspreet 

The Economics of Christmas

A very interesting article on the Wall Street Journal explaining the economics of Christmas caught my eye. The article titled, “How Christmas Brings Out The Grinch in Economists“, talks about how some economists say we would be better off without Christmas as its an inefficient mode of connecting consumers to what they buy by squeezing all the purchases in a year end buying frenzy. Moreover, people spend hundred of dollars on unwanted gifts that might just be put in a box and kept in the closet… Read More…

Posted by Rahul Gosain

Christmas Special –Chocolate Cake !!

Everyone must have been busy opening and sharing their gifts. Kids must have been enjoying and eating special dishes cooked by their Mom and Aunts together. Here below I share a yummy Chocolate Cake Double Layered Recipe , which you can bake for your kids and relatives to add a flavor to the Special Eve. This is a recipe from Indian Food Recipes .Check the video below; try it and make this Christmas Special..

 

 

 

“It is Christmas in the heart that puts Christmas in the air.”— W. T. Ellis

 

Wish you all a “Merry Christmas” sealed with Love and Warm Wishes …

“Grey Matterz” on its way to knock your hearts and deliver it..!!!

 

Posted by :Jaspreet 

Ten Surprises for 2009

In a collaborative effort between Global Equity Strategy and Global Asset Allocation, and in keeping with their year-end tradition, UBS presented in their final publication of 2008 a list of ten possible‘surprises’ for the coming year. Its aim is to identify plausible scenarios, representing risks—up or down—to investor consensus thinking, and in some cases, to its own views. 

UBS’ list of ‘surprises’ include:

1) Corporate default rates don’t rise significantly;

2) Oil prices fall below $20 per barrel;

3) The dollar falls to new lifetime lows;

4) Breakeven inflation rates remain near zero;

5) Global growth is negative for 2009;

6) The Fed purchases corporate credit;

7) Emerging markets regain parity valuations;

8 ) Equity ‘fallen angels’ soar;

9) Obama pushes for a ‘tax holiday’; and,

10) Gold goes to $300.

Perhaps next year the surprises will be somewhat more positive? Who knows! Now let us take a look at their last years’ surprises (predictions) and compare their conjectures to actual outcomes.

1) Global growth surprises on the upside: Did it happen? No.

2) Oil prices: Is 50 the new 20? Did it happen? Yes.

3) The dollar appreciates: Did it happen? Yes.

4) World trade clouds: Did it happen? Sort of.

5) Developed deflation, developing inflation: Did it happen? No.

6) Financials outperform: Did it happen? No.

7) Emerging equity markets under-perform: Did it happen? Yes.

8 ) Japanese equities outperform: Did it happen? It depends.

9) Equity volatility settles at lower levels: Did it happen? No.

10) Chinese inflation falls sharply: Did it happen? Yes.

With a success ratio of 40% in their last year’s predictions it attests that this exercise has merit. At least it can provide an avenue for ‘out of the box’ thinking which can aid risk management. But, still I’m stunned that there’s been no hint at the subprime crisis – how come they miss that? Whether their predictions hold good or live upto its own benchmark is a question that only time can answer. Let’s wait and watch!!

Posted By: Anirban Dutta

Jingle bells Jingle bells jingle all the way !!!!!

 Isn’t it amazing that tonight people will be all set and excited to welcome Santa Claus who will arrive on his sleigh drawn by reindeer to slide down the chimney in his red suit with long white beard and a sack over his shoulder? And tomorrow will be the Big Day when people will open presents under the decorated Christmas tree. But I never knew since how long and old are these traditions continuing from.

The Bible offers no date for the birth of Jesus, and it may or may not have been in December. The celebration of the birth of Christ on 25 December dates back to the fifth century, when Constantine made Christianity the official religion of the Roman Empire.25th Dec has been chosen for this festival of giving, sharing and rejoicing s to associate with the shortest day of the year, which falls between 22 December and 25 December. It was also Jupiter’s birthday and there are many other strange facts associated along with this selected date.

 

The story behind the change of name from St Nicholas to Santa Claus is nothing but the miss pronunciation of Dutch Sinterklaas. Sinterklaas is also known as Sint Nikolaas in Dutch-a holiday tradition in Netherlands and Belgium.The practice of thinking that Santa slides down from the chimney came from the writings of Washington Irving in which St Nicholas appears as a fat, jolly figure, dressed in fur, with a clay pipe and beard, who slides down chimneys. Santa got his dress-the trademark red suit from the cartoonist Thomas Nast. It was when Coca Cola Corporation appropriated him for an advertising campaign that began in 1931, and ran every Christmas for 35 years. And Louis Prang was also a contributor in the dressing of Santa. He was a Boston Printer who first introduced Christmas cardsto America. He featured chubby Santa with a red suit in his card. This picture rapidly changed the fur dressed and multicolored Santa’s to the red cloaked round-bellied Santa.

 

To know more:about the origin of Christmas cards, reindeers, turkey, mince pies check the Article at:http://www.nzherald.co.nz/lifestyle/news/article.cfmc_id=6&objectid=10549639&pnum=2

 

Posted By: Jaspreet

Merry Christmas

Team – Grey Matterz wishes everyone Merry Christmas. Have a Blast !!!
Posted by – Deeptaman Mukherjee.

Beware of Number 23 –subterfuge !!!

 

I recently watched “Number 23” starring Jim Carrey as Walter Sparrow / Fingerling. The most fascinating part in the entire movie was the Number 23 itself. The movie compelled me to think if numbers can actually explain the occurrence of things around us.

· 23 is the most commonly cited prime number and the only prime number that consists of two consecutive prime numbers.
· Two divided by three makes 0.666 recurring (devil’s number)
· The Hiroshima bomb was dropped at 8.15am – 8+15= 23.
· Charles Darwin’s Origin of Species was published in 1859 –
1+8+5+9 = 23.
· The Sept. 11th ,2001 attack: 9+11+2+0+0+1 adds up to 23.
· Each parent contributes 23 chromosomes to the start of human life.
· Julius Caesar was stabbed 23 times.
· William Shakespeare was born on 23 April 1564. He died 52 years later on his birthday, 23 April 1616.He was born and died on the 23rd day of the month.
· The average human physical biorhythm is 23 days.
· The Titanic sank on 4/15/1912; 4+1+5+1+9+1+2=23.
· The tilt of Earth’s axis is roughly 23 degrees.
· The pattern of DNA shows irregular connections at every 23rd section · Humans have 23 vertebra running down the main part of their spines
· Blood circulates the body on average every 23 seconds
· The average circumference of a human head in inches is 23
· There is no 23 Chapter in the Bible book Revelations.
· There are 2,300 stones comprising the Great Pyramid
· There are exactly 23 characters, numbers and letters on the face of all U.S. coins
· 23rdians are a group of people who subscribe to the mystical power of 23 and see it in multiple combinations throughout daily life.
· December 23, 2012 is the day the classic Mayans said the world would end.

I am sure after reading this you might be tempted to know more about this enigma if there exists more strange facts about 23 which reflect reality. If you really do so, it is known as apophenia –people get trapped by their own minds.

APOPHENIA – is the experience of seeing patterns or connections in random or meaningless data. It can be a normal phenomenon or an abnormal one, as in paranoid schizophrenia when the patient sees ominous patterns where there are none. The 23 Enigma refers to the belief that all incidents and events are directly connected to the number 23, some permutation of the number 23, or a number related to the number 23, given enough ingenuity on the part of the interpreter.

Posted by: Jaspreet

Booze Breeds Philosophers

 

Before you get amazed and shocked by the caption of this post, let me clarify all doubts that might have creeped up in your mind. I am in no mood to become a philosopher because philosophy is not my cup of tea. But, the tagline “Booze Breeds Philosophers” was suggested to me by Amit a few years back, when he was one in one of his trademark ‘jolly’ moods, the credit of which should go to ‘Miller Light’:)

As Brands make emotional connects with consumers, so do their taglines. Also, “B o o z e B r e e d s P h i l o s o p h e r s”, the tagline has the potential to be associated with any world famous brand. Are you hearing Heineken? Use it from my blog guys; believe me, I wont charge for it. And when a ‘perceived philosopher’ speaks about Beverages, Beer is the thing that real men gulp down (Oops, I didn’t mean that men or for that matter women who drink tea or coffee are virtual). Random hovering on the net made me land at a site which has all price related information for beer across 207 countries in the world.

To find out the Beer Price at your place, Click here at Pint Price.

Posted by – Deeptaman Mukherjee.

Taj–The Luxury hotel Reopens!!!

 

I was glad to read the reports on reopening of Taj and after viewing the pictures posted with it, I felt it was a day of pride and love for all Indians that the Taj have reopened in such a short time after the terror attacks. Indian Hotels Chairman Ratan Tata today said the restored iconic Taj hotel that opened three weeks after the terror attacks will be dedicated to those who lost their lives in the siege.The November 26 mayhem killed nearly 180 people besides causing extensive damage to the hotel. It was a challenge to have the hotel reopen within one month of refurbishment but the entire hotel will be opened by end-2009.

A press statement issued by the company said it has unveiled a memorial in salutation to all of those who lost their lives in the hotel during the terrorist attacks. The names of the 31 people who died in the attack will be inscribed at its base. There is still much work to do, but they are all determined to rebuild the Taj brick by brick until it outshines even its former glories. The reopening of Taj was blessed with hopes from people all over of standing again for the next 100 years, just as it had for the 103 years that have passed.

 

General Manager of the Taj Mahal Hotel, Karambir Kang whose wife and two minor sons were killed in the November terror attack, returned to work on Sunday. The new phenomenon of terror tourism seems to have taken root in the metropolis with tourists and even locals preferring to have themselves ‘shot’ against the backdrop of the Taj Mahal Palace and Tower hotel instead of the historic Gateway of India. That brings some business back to the photographers.

 

“Mumbai seems to have returned to normalcy”. But what about Terrorism?? Should we let this activity hamper our prosperity and serenity again? We the Indians have shown solidarity in the past. “United we stand and divided we fall”. There was time when we joined hands and got independence .Now is the time again striking together and wish for miracles. We should be bold enough to deter and stop terrorist. Instead of getting scared, we should scare them with our resolve to fight back.

 

We, the team “Grey Matterz” , would like to convey our heartiest wishes to Mr. Ratan Tata and to everyone behind the scenes that have made this a reality in such a short time after 26/11 as the world watched in horror the devastating attacks on the Taj Mahal Hotel in Mumbai.

 

Posted By:Jaspreet

Where Asia stands…

The question everyone wants to know is When will things get better? I am talking about Asia in particular and Asia has a very serious concern that investors in US, Europe and Japan might choose to part ways for the time being….

Read More
Posted by Rahul Gosain

Market Failure and the Big Three

 

It was much debated on whether the Federal Reserve should bailout the U.S auto industry or not. Many were of the opinion (with a conservative view) that the Big Three could probably survive and be competitive if the U.S government would let them go into Chapter 11 bankruptcy instead of bailing them out with taxpayers’ money.

In a capitalist economy, government intervention is less likely and less welcome unless there is amarket failure which has far reaching effects. The fall of the Big Three would have been an imminent danger to the U.S.A’s national economy. President Bush’s order for an emergency bailout of the U.S auto industry offering $17.4 billion have risen mixed feelings. The autoworkers union complained the deal was too harsh on its members, while Bush’s fellow Republicans in Congress said it was simply bad business to bail out yet another big industry.

To my opinion the Fed’s decision is perfect as it could not afford to allow the massive auto industry to collapse when the economy is already in the middle of an economic downturn. The Big Three’s fall could send the U.S economy into a deeper and longer recession. But, it is also high time for the U.S auto companies to reform bad management practices and begin the long-term restructuring to safeguard the millions of jobs it provides.

Posted By: Anirban Dutta

India’s ready for SSZ-Sky Scraper Zone !!

 

The large cities world wide are known and defined by their iconic skyscrapers. To name a few: The Petronas in Kaula Lumpur; the twin towers of the World Trade Center in Manhattan (levelled by 9/11) and the Empire State Building, in New York; Sears Tower in Chicago, Taipei 101 in Taiwan and the Burj tower in Dubai — these structures stand as towering symbols of their cities’ power and character.Unfortunately, India does not have any tall structure which can be epitomised as a skyscraper. If plans work out according to schedule, Hyderabad may become the first Indian city to have an iconic superstructure. 

The Government is planning to create an exclusive Sky Scraper Zone (SSZ) on the city outskirts, where construction of buildings with less than 12 storeys will not be permitted.450-metre tall structure is at present being constructed in Manchirevula, on the outskirts of Hyderabad. The 100-storeyed building is being constructed by Andhra Pradesh Infrastructure Corporation, and will be called APIIC tower. Its amazing to see the growth towards the Reality Sector in India. With this skyscraper the government is heading towards few more with certain established norms which have to be considered before moving forward with the plan.

 

Known as the city of Pearls, Hyderabad has a population of around ten million people. Aside from this, it is the second largest in the country when it comes to land area covered. “It’s time a fast-growing city like Hyderabad had a skyscraper zone with no restriction on the height of the building. An SSZ would be a multiple-use zone with high-end offices, commercial, shopping and entertainment complexes.Government sources say inadequate fire-fighting equipment in the city will not be a hurdle as such tall structures will come with intelligent building system and in-built safety mechanisms.

 

Posted By:Jaspreet

WikiAcademy–Now in Asia!!

Wikipedia, the most accessed online encyclopedia is heading its way to India. There are various reasons and it does make sense for this encyclopedia to take keen interest in India. It is not one country’s encyclopedia but a global encyclopedia. So, “Being a global encyclopedia, we need an east-west balance in our content, quantitatively as well as perceptively,” said Wikimedia foundation founderJimmy Wales. 

Asia’s first Wikipedia academy has been set on rolls in Chennai. It’s like a training centre which will enhance the skills of the interested participants. As the exchange and sharing of knowledge seems to be recession proof, Wikimedia foundation is all set to expand its participation base in India. Wikipedia is the fourth most used site in the world, and sixth in India– Wikipedia is ushering in Wiki Academy, a connect between Wiki and its users . With close to 277 million users visiting it every month, Wikipedia needs more contributors or participants from India, and also the world. But, India does not contribute as much to Wikipedia. This foundation encourages the participants to contribute to Wikipedia especially in regional languages. This community-based organization, however, has decided not to venture into web-based social networking. The understanding that Wikipedia is not merely for consumption and contributions should be made was the motive behind this WikiAcademy.

“Wikipedia was never about a clever business model. It was about the mission of developing one global encyclopedia for every person on the planet. That excited people. It created the movement which you see has created Wikipedia today,” Mr. Jimmy Wales said.

Posted By: Jaspreet

Social Media Networking & its Effects

Chris in his blog mentions that there are various benefits of social networking which have an effect and require you to be vigelant about who you are connecting with. It is also common logic that your network only increases when you have good relations with everyone in your circle. He further mentions the benefits of growing your social media network which would serve the following purposes-

– More opportunities
– Greater access to expertise, information, news
– Frequent, valuable feedback
– Accelerated growth through viral effects
– Lower cost and better quality attention

I would start believing him nowadays specially at the recessionary times. I once mentioned in my personal blog that ‘Its just connecting to people‘, but it is worth noting a fact that new networks help you locate new business opportunities. But, to excel in the art of managing your relations online and seeking a profit motive out of it, there has to be a balance between the relations you manage and the time associated with it. The plethora of social networking sites have exploded in the last few years and there have been special social networking sites for the who’s who of the society.

Chris further suggets some social networking sites which are a must for almost every netizen today. These are –

Conversation – Twitter
Bookmarking – Digg and StumbleUpon
Groups/Social – FaceBook
Business Contacts – LinkedIn
Pictures – Flickr 

Friends, I am on Orkut, Where are you? Please socialize with me there.

Posted by – Deeptaman Mukherjee

Erotica & Economics

A brain-scan study may help explain what is going through the minds of financial titans when they take risky monetary gambles: sex.

When young men are shown erotic pictures, they are more likely to make larger financial gambles than if they are shown a picture of something scary, such as a snake, or something neutral, such as a stapler. The arousing pictures light up the same part of the brain that lights up when financial risks are taken.

These results have been brought out in a study involving 15 heterosexual young men at Stanford University, focused on the sex-and-money hub, the V-shaped nucleus accumbens, which sits near the base of the brain and plays a central role in what is experienced as pleasure. When that hub is activated by the erotic images, the men are far more likely to bet high on a random chance game that would earn them either a dollar or a dime.

Stanford psychologist Brian Knutson, a lead author of the study, says “it is all about the power of emotion and arousal and financial decisions. The trigger does not have to be sex – it could be chocolate or a winning lottery ticket”. To quote … the link between sex and greed goes back hundreds of thousands of years, to men’s evolutionary role as provider or resource gatherer to attract women.

The study conforms to recent research that indicates men shown a pornographic movie are more likely to make riskier sexual decisions. Another suggests straight men think less about their financial future after being shown pictures of pretty women. One still-to-be-published study at Harvard University found a link between higher testosterone levels and financial risk-taking.But the study conducted at Stanford, funded by the National Institutes of Health, went deeper, using functional magnetic resonance imaging machines. It is part of a new but growing field called neuroeconomics that attempts to take the hard-wired science of brain biology and mix it with the softer sciences of psychology and economics to figure out why people make the financial decisions they do.

An earlier study by the same team found that the brain’s reward area lit up at about the same time as risky decision-making. The erotic pictures experiment is designed to find which is the cause and which is the effect. The answer: Lighting up the reward area, in this case with soft-core pictures, caused the risk-taking. The more activation there you have, the more prone you are to taking more risk. It could be a feedback loop. The flip side is that the photos of snakes and spiders activated the portion of the brain often associated with pain, fear and anger. And those people are more likely to bet low.

This all makes sense to Harvard economist Terry Burnham, author of the book “Mean Genes“. Burnham said it could be all summed up in a famous line from the movie “Scarface“. “In this country, you gotta make the money first. Then when you get the money, you get the power. Then when you get the power, then you get the women.”

Posted By: Anirban Dutta

Madoff’s Ponzi Scam–

Investors sent stocks lower as anxiety over the growing list of firms affected by investment manager Bernard Madoff magnified Wall Street’s concerns about the health of the financial sector. Madoff stands accused of operating an elaborate Ponzi scheme, using cash from new investors to pay off older ones, to the tune of $50 billion. US authorities allege that Madoff delivered consistently strong returns to clients by secretly using the principal investment from new investors for payments to other investors in what is known as a “pyramid fraud.” The alleged offenses only came to light because he could no longer raise the money to keep his scheme going, according to the US Securities & Exchange Commission.

The 70-year-old Madoff, well respected in the investment community after serving as chairman of the Nasdaq Stock Market, was arrested as he was suspected of leading a $50 billion Ponzi scheme.Global finance giants have admitted huge potential losses in the suspected pyramid fraud scam run by the Wall Street veteran. HSBC has potential exposure of about $1.5 billion, the Financial Times reported.The Spain’s largest bank said its investment fund Optimal has a 2.33 billion euro exposure to Madoff Securities. France’s largest listed bank ,BNP Paribas said it has a potential 350 million exposure. Santander, the eurozone’s largest bank by market value, said its clients had an exposure of 2.33 billion euros to Madoff’s investment funds. Nomura Holdings, Japan’s biggest brokerage, said it had a $303 million exposure related to Wall Street trader Bernard Madoff,

Madoff’s alleged fraud has apparently shook the world. More so because it is stated to the world’s biggest financial fraud till date. Shock waves from Bernard Madoff’s alleged fraud spread globally, as charities, wealthy individuals and banks disclosed losses from the prominent Wall Street trader’s investment management business.Madoff claimed that he had only 200 to 300 million dollars left, while prosecutors were uncertain how much money Madoff’s clients, among them banks, prominent investors and celebrities, have lost.

Bernard L Madoff Investment Securities LLC, operated as an international market broker with a separate investment advisory business for private clients. The advisory business was kept secretive by Madoff and served between 11 and 25 clients with 17.1 billion dollars under his management. New York hedge fund manager and Wall Street legend Bernard Madoff has been charged with what could be the largest Ponzi scheme in history.

Posted by: Jaspreet

The Indian Desi T-Shirt

I was reading a piece of news when I was completely shocked when I saw some pictures that made me laugh and pity the retail market. The headline said “The T-Shirt gets a desi voice” under the section ‘Retail Therapy’. Moreover, these t-shirts were priced at INR 1000/- as their starting price. Couldn’t do anything than having a hearty laugh and telling my friends about this new concept which I am sure would fail. Don’t ask me the reason of its failing, rather bet me on the failure.

It is not that I am broke and can’t purchase them, I am filthy rich man and I can buy 10 of them. But the point is I would look a complete dumbass after wearing this piece of shit (Yeah, SHIT). I consider myself the Gen Y of this country and needless to say that this T-shirt with its unique yet moronic styles, taglines, concept and designs has been targetted at the Youth. But, answer this yourself, How many of you would buy it? Even if you guys buy it, Where would you wear it?

I would prefer wearing it while shitting in the pot, because that is the only place in the world wherein I am sure that no one is watching me. Come on man, who the hell would buy this piece of bullshit. Atleast, I won’t.

Posted by – Deeptaman Mukherjee

Virtual world economy–Gold Farming!!

Gold farming is a game in which a player attempts to acquire certain items of value within a game, usually by exploiting repetitive elements of the game’s mechanics. This is how the Chinese gold farmers earn their livelihood by playing the massive multiplayer game. They then gather the virtual money earned in the game and thereafter sell it for real money. I wasn’t aware of such practice though heard of virtual world economy– .But this is referred to as Gold Farming. Chinese Gold Farming (CGF) refers to people in poorer countries who play MMO video games for the sole purpose of generating the virtual currency in those games to be sold to other game subscribers

Playing online games for 12 hours is a fulltime job for thousands of Chinese workers. They work in seven twelve-hour shifts a week. It’s highly repetitive work .They follow the loot-maximizing strategy which involves hanging around the same little area and whacking the same monsters over and over. Wages depend heavily on location and the size of the gold-farming company. Julian Dibbell has written many articles on Chinese gold farming and their lifestyle. He in few of his articles have also explained that these people involved in the game at times get bored of the same routine throughout. But at times they have more fun – The owner of one gold farm proposed that rather than grinding out more loot, his workers would build 40-man team who will serve as mercenaries. These mercenaries will be hired by the players of the game to accompany them while they attack the toughest areas of the World of Warcraft (WoW). But this strategy came to an end in no time. One day word came down from the bosses that the 40-man raids were suspended indefinitely for lack of customers.

But this is really amazing that these gold farmers earn only while playing a game. You will be astonished to know that there are around 100,000 people in China who are employed as gold farmers, as of December 2005. The rising prevalence of gold farming has led to the creation of gold-farm brokerages. The sale of virtual items and assets has found its way into auction sites such as eBay. Although it was a common sight to see gold farmers list their virtual items on these sites, the sale of these virtual items does not actually take place there.

The market for massively multiplayer online role-playing games, known as M.M.O.’s, is fast-growing .There are gold farmers or gold farms in other countries as well, such as the Philippines, Indonesia, and Mexico. However only Indonesia comes anywhere close and even then it still is in a league below that of China.

Posted By: Jaspreet

Sex Advertisements as Borrowed Interest Devices

I read an article about an ad which was actually a poster across a room and had “SEX” written on it in the largest font size possible. As every human secretly fantasizes about it, I (please consider me a human) would have also gone closer to it; just to read a smaller print at the bottom which would have said, “Now that I have your attention, let me tell you about the advantages of….”. There are many ads which can be googled and related to the similar theme as mentioned here. Self embarrassment would have crept into me because I myself thought that how can a marketer be prone to such ads. The would be reason for the embarrassment actually was the hidden wish that no one else on this planet should have seen me commit such a probable mistake (would it be one ?). I then would have said, Brilliant Concept. Hats off to the mind behind the ad !!

A thought about the ad specifics made me believe that the concept of borrowed interest was again panned as a poor communications vehicle made by amateur ad designers. I still think that borrowed interest ads and marketing communications of similar types get a lot more credit than they actually deserve. The ad actually targets everyone including me, ignorant of the fact that there have to be specific target audiences to be kept in consideration. The sole purpose of this ad is just to capture the attention of every Tom, Dick and Harry passerby. I asked myself, “Are ads made to create awareness and get attention?” The answer I got is “Yes”. I again asked, “Did this ad had a target market in consideration when it was displayed?”. This time, I got the answer as “NO”.

The ad basically tried to capture attention without before even trying to consider the customers as the potential market. It also made me understand a fact that not all tag lines have the same amount of substance in the body copy and it is better to ignore them. Therein comes the concept of “Borrowed Interest”. It tried to borrow the interest from an act “sex” which is actually liked by all human beings on the earth, but it is impossible to have a target audience which comprises of the entirety of human race.

In case, the ad team which was behind this ad comes across this blog post of mine, I suggest 3 things which the ad team should have in mind while making an ad from the next time.

1. Target ads at people who are interested in the ownership of the product being advertised. It is indeed not necessary to get the attention of any non-buyer.
2. Good ads should be aimed at the people whom you are selling to. The ad comprising of the main theme, body copy and the tag line should have a sync in them.
3. The marketing communique should be aimed at the interest of the target market rather than all the viewers of the ad.

Posted by – Deeptaman Mukherjee.

The Smoker’s Grave

Adpunch mentioned this ad as one of their favourites. I agree with him.

The print ad shows that the smokers are situated in a room which actually looks like a grave from the top. This is actually true, because that is what smoking does.

One of the best socially responsible ads I have ever seen.

Posted by – Deeptaman Mukherjee.

Rational Religion?

Religion works on a key principle and that is not of belief but of anti-rationality. The fact that it is faith, denies one from asking questions which can have tricky answers or tend to look for rationality. Take any religion, the reason for belief is not faith per-se but Fear. So does fear psychosis drive religion? You answer that…

Think about this:
If you question the holy spirit you go to Hell
If you commit a sin, then you go to Hell
If you are a disbeliever, you wont get salvation and go to Heaven. The only other options are being damned and sent to hell or not being in peace after you pass on to the next life
This stands true in the context of any religion. You just can’t question the way things are or why they are said to be in a particular way in the religious texts. You just read them and believe them. No questions. What I am trying to say here is that all the deterrents here boil down to Fear of some form or the other. The Fear of going to Hell, or being damned or not finding peace etc. etc. etc. Try to be rational with a person of faith and he will call you a disbeliever if he is not able to answer your questions. When we grow up, we are taught to believe and have faith but never taught to question. Eventually as some of us grow up, we start questioning WHY and that’s a very tough word.

Many would disagree with what I say but then again, they choose not to question. Rationality and Religion are not the best of friends you see…..

Posted by Rahul Gosain
(I am a person of faith myself. The views expressed in this post are not with the purpose of hurting any one’s religious sentiments)