Printing Money

bubblesmoney

harryhound wrote: »

Interesting map.
I would thing this was created when the oil price was king, judging by the number of countries (such as Angola) enjoying booming economic "growth".

(Thinks: An increase from one dollar a day to 1.50 in wages is a 50% growth rate)

a high wage doesnt necessarily equate to a higher standard of living. a lot depends on the wage to expenses ratio. a lot of places with low wages will still have a good standard of living as expenses will be very low as well. but this wont apply to all such places with low wages

eg. many developing nations have a savings percentage of 25%. so guess their wages allow them to save enough after expenses. ANYONE would be happy if they regularly saved 25% of their wages, know loads who save 50% salary in developing countries like india. people do that there as many people buy property for cash and dont take mortgages etc. loads of people including me and my parents bought properties there for cash on quite a few occassions. almost all my relatives did the same as well. only recently people have started buying on mortgages there hence the price boom now.

tradetime

sabretoothtigger wrote: »

The advantage to the bleak outlook for our own market it is more reasonable to look abroad for growth

The returns in india have been amazing in the past, while it is risky they also have some incredible gdp growth of 20% I think I read and also high interest rates to go with it.

If you buy into the market over 2 or 3 years with regular payments it would give a much better chance of getting a reasonable starting point for long term growth I think.
Ive even seen a tracker but really I dont have a great general feel for their prospects just a belief in the fundamentals vs china and japan as mentioned above.
People are what make money grow both as producers and consumers

The alternative is to invest in ftse companies with exposure to developing markets ,with a weak pound as an advantage any growth overseas should be a big plus I think



'Mibor' 9.3%
http://www.nse-india.com/marketinfo/eod_information/bidbor.jsp

There are a couple of Indian trackers by way of ETF, that trade on US exchanges, and doubtless a few funds.
GDP was 9.6% for '06/'07 and the forecast for 2008 was between 7.8% - 8.1%

tradetime

bubblesmoney wrote: »

whats a margin account and what are the charges like

A margin account is an account where the brokerage extends credit for the purchase of securities, most US accounts offer 2:1 for overnight and 4:1 for intraday, thus if you have $200k in your account your overnight buying power is $400k and your intraday buying power is $800k, interest is charged on margin usually at a set rate above the FED funds rate (if US) an example would be 0.5% above Fed funds. I believe UK brokers use LIBOR Access to Indian shares would be your problem, I would investigate the possibility of an Indian brokerage for that?
Personally I would not encourage using margin for investing, I tend to view any activity in the stock market to be gambling. Those with the resources of Mr Buffet, or large investment houses, who can truly examine a company being the exceptions to this. There is generally not enough transparency in companies, and too much creative accounting, for retail investors to cut through. If you have followed the statements issued by companies during this crisis you will not have failed to notice there have been lies after lies issued. Investors tend to use much less risk control than traders, thus margin can be dangerous.

bubblesmoney wrote: »

waiting for a further crash then will think of jumping in. prefer shares to property as more liquid and can manage online from uk. i mainly plan on buying and holding for a few years. dont plan on buying selling and making profit loss on margins etc.

Personally I am certain we will retest the lows again, and I feel it is highly likely we make new lows, (US and Eurozone) I would expect the rest of the world to do likewise, though I would be very interested in any market that did not make new lows if US and Eurozone do. Hard to get a feel for markets currently as December is a nothing month, most institutions have packed up for the year in about the first week, and speculative traders rule. I had expected the rally we have seen to extend into the first quarter with next leg down into second, but we shall see, events develop so fast in this crisis

bubblesmoney wrote: »

.i mainly plan on buying and holding for a few years. dont plan on buying selling and making profit loss on margins etc.

have quite a few in my family who do that and hopefully will get a bit of advice but i am cautious as know people (indirectly)who lost a million pounds while playing the forward markets in india. someone closely related as well lost well above 100,000 $ playing in usa shares but they dont seem to be bothered much as they indulge in shares regularly unlike me. i cant handle losses like that so just plan on buying fundamentally strong companies. have friends who have been buying like this for well over 10y (without IFA advise etc!!!) in indian shares and getting returns of 30% annually on an average over a 10y period until last year!!! havent asked how they fared this year but guess they would have offloaded quite a bit (hopefully). my mum has been dabbling in this for a decade and has done ok from what she tells me, dont know the actual position as i dont meddle in her finances even though if things turn bad for me she will surely back me up without a doubt. if i had listened to her and made property investments as she wanted then could probably have retired by now!!! no use crying over spilt milk as was trying to make do on my own and have done ok i guess financially.

Essentially, as you have already worked out, you should approach the markets in a way that you are comfortable with, if you are not comfortable doing what you are doing you will get burned, people make bad decisions outside their comfort zone.

bubblesmoney wrote: »

regarding ur concerns about recent developments, i personally wouldnt worry about it (with the long term in mind0. india has been affected by terrorism for nearly 2 decades now but things have still vastly improved on the economy front. advantages the way i see it are - 1.2 billion population (could be a disadvantage as well) but this will be a good market for consumer companies, economies of scale do matter. infrastructure is slowly developing. in comparison to china, india is not in a population timebomb as chinas population is age heavy due to the one child policy while the majority of indian population is below 25y so things should be ok for a few decades at least. services sector has taken off, especially outsourcing etc, software industry has been doing well as they are mainly into bread and butter software rather than highend consulting that has been affected badly elsewhere, think there is an ok supply of raw materials except oil. transport networks are improving. so i wouldnt have much concerns investing there probably because i am from there. but i do undertsand that for the outsider high profile events like happened in mumbai matter a lot in making financial decisions. i feel that event will have mainly short term effects (hopefully). also the country has always been a democracy except for 1.5y over the last 61y since independence which cant be said for most other developing markets. so am bullish (inspite of the negative points) about the market there and will enter when the price is right for me

Thanx, useful insight, I have never been to India, even though I have traveled extensively, so it is difficult to get a feel for things, other than what is reported in the (oh so objective ) media, as I said previous, the recent events gave me pause for thought, perhaps is the best way to describe it, all countries have their problems, some more high profile than others.

sabretoothtigger

Vodafone wins battle for Indian giant

By David Prosser
Monday, 12 February 2007

• Print
• Email

vodafone won the battle to secure control of Hutchison Essar, the fourth biggest mobile operator in India, last night in a deal that will cost the British telecoms giant around $13bn (£6.7bn) in cash and debt.

I think they recently ended up with a tax bill for this
http://www.independent.co.uk/news/business/news/vodafone-wins-battle-for-indian-giant-436101.html


Anyone know of other companies with similar exposure?

IveSeenTheLight

tradetime wrote: »

Sorry dude, my bad, I did scale them down, to 70% and check them before posting (mine doesn't scroll horizontally) but I guess I must be using much higher screen res than you

My screen res is 1280 x 1024 which I thought was pretty decent.
any way, thanks for adjusting for us with mower res monitors

sabretoothtigger

The difference is the browser I think, its fine in firefox at that res. In IE its stacked the pics against each other to make it stupidly wide.
I advise against using IE in general its full of exploits. Either way it was a post worth the effort of reading

IveSeenTheLight

sabretoothtigger wrote: »

The difference is the browser I think, its fine in firefox at that res. In IE its stacked the pics against each other to make it stupidly wide.
I advise against using IE in general its full of exploits. Either way it was a post worth the effort of reading

Call me old, stuck in my ways, but I like IE.
I've never really had a problem with it.
When I did a bit of wep page designs in my spare time, I had mozilla, firefox, safari etc etc etc for testing purposes, but I reverted to IE as my main browser

bubblesmoney

sabretoothtigger wrote: »

I think they recently ended up with a tax bill for this
http://www.independent.co.uk/news/business/news/vodafone-wins-battle-for-indian-giant-436101.html


Anyone know of other companies with similar exposure?

i think vodafone overpaid for that company. anyway companies like vodafone will struggle in india as india is a very price sensitive market. vodafone from my experience in the uk is not exactly a cheap provider. for eg mobile calls cost 1rupee per minute (1pound is equal to 76rupees now earlier 1pound was 92rupees). loads of indian providers do well due to economies of scale even though pricing is very low. i am not exactly sure vodafone is cut out to survive in that sort of a market. u can get info on the companies u need on https://www.moneycontrol.com which is the website for indias business news channel in english called cnbc india tv18. their tv coverage is good similar to bloomberg here so guess their website will be ok as well.

sabretoothtigger

lethal0r

is the BBCs description of quantitative easing wrong? (blue box at bottom).

http://news.bbc.co.uk/1/hi/business/7817453.stm

Done by writing out cheques to banks in exchange for assets, such as government bonds

I thought the banks bought the bonds off the government so the government got the money? To me the BBC description reads the opposite.