Financial Market - 7 Questions On Top of Our Minds at The End of 2016..!

7 Questions On Top of Our Minds at The End of 2016..!

5minwrapup,  Equitymaster.com

Eventful would be an understated adjective for 2016. What started as a year of hope, has ended to be a year of bleak stark uncertainties.

 And this is not just about demonetisation!

In fact, am quite sure that there is a lot more that even you are worried about.

Take a pen & paper and put down the questions that you would want to ask and to whom. I just did. And I am looking forward to the replies to these questions in 2017...

1.   To Prime Minister Mr. Narendra Modi

80% of your reforms seem to address about 20% of India's economic challenges. When and what will be the 20% policy changes that solve 80% of our problems?

The list is long: Jan Dhan Yojana, Swachh Bharat, Digital India, Skill India, Make in India, and so on. You could claim these are initiatives are steps towards Acche Din. But honestly, all these moves put together still aren't enough.

Demonetisation was, no doubt, a bold move. But numbers suggest that it will hardly rid the system of black money. As time runs out before the next elections, what will be the game changer?

2.   To RBI Governor Mr. Urjit Patel..!

At what point will the central bank take action to weed out the structural incentives for corruption in the Indian banking system? Depositors are losing trust in banks. 

They ignored the loan-for-bribe scandal. They were patient with the banks. But one scam after the other is taking a toll. What will the RBI do to rid India banks from the perception of being the 'new corrupt'?

3.   To SEBI Chief Mr.  UK Sinha..

Can we have a 'Most Credible Companies Index' to compete with the Sensex?

Most investors in India use the BSE Sensex as a benchmark for safety and returns. But the Tata fiasco shows that companies with the most market cap and liquidity may not always be safe and credible. 

Do lay investors not deserve to know which companies in India are the most credible? Such an index, along with the Sensex, would serve investors well.

4.   To Niti Ayog Vice Chairman Mr. Arvind Panagaria

Why don't you think the impact of demonetisation on India's GDP will be significant?

The smallest shops to the biggest industries in India have seen demand fall by as much as 50% since 2016, 8 November. This isn't likely to improve until sufficient currency is made available. 

Digital payment options aren't enough. What then is that math behind your optimistic prediction? And when will Niti Ayog be known for better planning than the erstwhile Planning Commission?

5.   To US President-Elect Mr. Donald Trump..!

Will you change the definition of 'fair and reasonable' in US trade deals like you did in your real estate deals?

The book Trump Strategies for Real Estate suggests that you have, from time to time, changed the definition of 'fair and reasonable' to make your real estate deals more profitable. 

Should Indian companies with US trade relations expect Trump shockers like these during your presidency?

6.   To US Fed Chief Ms. Janet Yellen..!

How long will you and your fellow central bankers in the eurozone use fake monetary policies to stay in your job?

Fake reasons to keep interest rates low. Fake money to keep asset prices high. Fake monetary policies to keep your job. 

None of this is any longer a mystery. What else will you and your fellow central bankers pull out of your hats to stave off a collapse of the financial system (a collapse that you helped create)?

7.   To Mr.  Warren Buffett..!

If you were starting Berkshire today with a small amount of capital and had the choice between India, China, and the US for a base, where would you go and why?

In your philanthropic pledge to the Bill and Milinda Gates Foundation in 2006, you wrote,

'My wealth has come from a combination of living in America, some lucky genes, and compound interest.'

With the same genes and magic of compound interest, do you think India or China would be a better place to start Berkshire today?

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