Govt. policy matters little for the big sector leaders. They’ll become bigger & stronger. It’s the bottom 5%-10% of businesses that face extinction. Sometimes the situation demands us to spend money & get out of a crisis. Can we do it? @PMOIndia @narendramodi @nsitharaman @RBI
Let’s privatise our PSUs.Privatisation will get a better price-disinvestment won’t.The country needs immediate cash and if it doesn’t the small and mid-size players will be killed. They need cash grants/wage support not loans. In distress you repay back loans not take more of it.
Failure across businesses, will create job losses, defaults and also social unrest. People cannot survive on DBT. The habit of ‘money without work’ is dangerous. They will resort to illegal activities. Corona, economy with Law & order. Can’t deal with 3 fronts at the same time.
We need to get people on the job. At least plan for it. The middle class needs tax breaks. While one person might buy a car it takes a few dozens to make one. So let’s give some money in the hands of the tax payer.GST cuts makes things cheaper.But who’ll buy in times like these ?
Would you buy a BMW at 30% discount while serving a notice period? No. The salaried middle class needs help. As an investor for 28 years I have seen this and many more so I can wait but economic cycles won’t. It’s like an aligator’s jaw once you’re in it you can’t get out.
A downtrend lasts years and this time there’s no global support. It’s like being dropped in the ocean without a life jacket. We also need the RBI for help. They are like the big uncle who comes and sits down in terms of a crisis. They do nothing but the mere presence is enough.
Certain measures by the @RBI don’t need cash. And they don’t impact the fiscal deficit also.
For example, get the CRR to zero. This will create more liquidity at zero cost. Why should RBI make money from banks? Have we saved any bank of bankruptcy just by having a 3% CRR.
For example, get the CRR to zero. This will create more liquidity at zero cost. Why should RBI make money from banks? Have we saved any bank of bankruptcy just by having a 3% CRR.
Like western nations reduce capital adequacy to maybe 6%, get reverse repo to 1%, buy corporate bonds - directly. Why not take the first 25% hit on funding SMEs? Open a direct line of credit for NBfCs? They are the last mile connection. The artery that brings blood to the heart.
There are no moral hazards here only economic gains for the economy and the society.Yes, these things haven’t happened before but even Corona is new.We need to have immediate action unless we are happy to see millions lose jobs and the economy go back to the growth of the 1970’s.
The economy right now is like a cardiac patient. Let’s not make it a patient of cancer.
P.S - As a citizen it’s our job to express suggestions. It’s for the Govt. to act or not to act. I can go on and on but what’s the use? The consequences however will have be borne together.
P.S - As a citizen it’s our job to express suggestions. It’s for the Govt. to act or not to act. I can go on and on but what’s the use? The consequences however will have be borne together.
