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Monday 20 January 2020

Like People

Remain yourself. You have a unique talent so neither ask anyone to be like you nor you be like someone,learn from the basic economic concept:
If you be like someone or someone becomes like you,supply of "like people" would increase and their value would be cheaper. People would talk about the one's who are different from the crowd.
So be yourself and let your value increase.

Originally Posted on (Jan 20, 2016)
Demand Supply



Tuesday 7 January 2020

Operation Twist

He felt disturbed as he couldn't get rid of the quarrel he had last week with a stranger on road. According to him, he was not faulty. His ego was hurt. Due to that, he was not able to focus on other things. So he went to his friend to vent out the frustration and seek consolation. Both were economist.

The friend came up with solution. He mentioned two words, 'Operation Twist'. The disturbed one stared at him. The friend joyfully exclaimed, 'Operation Twist' shall boost you.

'What?', the disturbed one  asked.
The consoler began, "Work on Operation Twist
Learn from economy. Whenever the mind feels disturbed due to temporary people in life, use operation twist.
Sell short term bonds. Forget about the irritations caused by temporary people.
Invest in the long term bonds. Keep in remembrance your parents, your siblings, your well wishers. They'll keep your life boosted with bliss.
When you focus on long term bonds, love shall rise, selfishness shall fall!
So use operation twist. Why to bother and think about that stranger and keep in mind that particular scene. Forget it. Widen the horizon.  Keep the long term bonds in mind whenever you feel disturbed. It shall reinvigorate your mind, the way it shall boost weak economy!"

After hearing such an analogy, both of them laughed and the disturbed one felt healed!

The healed friend further added, 'Caution, Assumptions exist'!

Laughter bloomed.

Operation Twist




Friday 3 January 2020

Let's Twist!

Let's Twist!

"Aao twist karein, bonds ko twist karein!"  RBI is on mission to work on vision, 'Operation Twist' to boost economic growth.

To flatten the yield curve, RBI will sell short term bonds and, with that money, purchase long term bonds. By purchasing long term bonds, its demand shall increase. Long term bond price shall rise and interest rate shall fall. Long term bond yield rates are set as benchmarks, so a fall in its interest rate shall boost economy.

For past quarters, RBI had reduced repo rate by 135 basis point but money transmission mechanism failed to transfer its benefits. So, weak economy is all set to get boosted with a twist!

Such twist, first, happened in US. It's US that named such specialized Open Market Operation as 'Operation Twist'. For the first time such twist shall happen in India. So let's witness how energetic the Indian Economy gets, with this twist!
Operation Twist