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Casual Articles - The Babu and the Market
Calculating Revenue Property verall stock market.What is revenue property? What does it mean? The meaning revenue in the dictionary says: Yield from property or investment; income. I mean cashflow. Cashflow meaning what is left over on This is an oversimplifications, but it gives you an idea why the voting in of a socialistic/left-leaning government is accompanied by a drop in the stock market. Namaste Original link: MLM Training: Online MLM, Ofline MLM, Or Both A Babu is an Indianised term for a government official. In recent times, it has taken a disparaging connotation -- for someone who is slow and inefficient. Here is how The Webster Dictionary defines it. There is a general consensus that excessive bureaucracy was to blame for India's slow growth since Independence in 1947 to the early nineties. But how exactly, does any inefficient bureaucracy stymie growth? The answer is surprisingly complex. What a lethargic bureaucracy does is increase the government deficit. This in turn, causes interest rates to rise. In other words, borrowing costs for corporations also rise. [Lot of macroeconomics deleted to come to this conclusion] Thus a corporation that intends to borrow money for buying expensive equipment might put off this decision till later. Corporations that are already paying interest might pay higher amounts due to higher rates(not dissimilar to a variable rate student loan). Therefore their net income(income - costs) drops, as costs increase. Thus the stock price (P/E * net income) also drops, as does the overall stock market. This is an oversimplifications, but it gives you an idea why the voting in of a socialistic/left-leaning government is accompanied by a drop in the stock market. Namaste Original link: Homes For Sell By Owner - FSBOs and Buyer Brokers The answer is surprisingly complex. What a lethargic bureaucracy does is increase the government deficit. This in turn, causes interest rates to rise. In other words, borrowing costs for corporations also rise. [Lot of macroeconomics deleted to come to this conclusion] Thus a corporation that intends to borrow money for buying expensive equipment might put off this decision till later. Corporations that are already paying interest might pay higher amounts due to higher rates(not dissimilar to a variable rate student loan). Therefore their net income(income - costs) drops, as costs increase. Thus the stock price (P/E * net income) also drops, as does the overall stock market. This is an oversimplifications, but it gives you an idea why the voting in of a socialistic/left-leaning government is accompanied by a drop in the stock market. Namaste Original link: Strict Foreclosure Explained Thus a corporation that intends to borrow money for buying expensive equipment might put off this decision till later. Corporations that are already paying interest might pay higher amounts due to higher rates(not dissimilar to a variable rate student loan). Therefore their net income(income - costs) drops, as costs increase. Thus the stock price (P/E * net income) also drops, as does the overall stock market. This is an oversimplifications, but it gives you an idea why the voting in of a socialistic/left-leaning government is accompanied by a drop in the stock market. Namaste Original link: How To Power Level In World Of Warcraft Therefore their net income(income - costs) drops, as costs increase. Thus the stock price (P/E * net income) also drops, as does the overall stock market. This is an oversimplifications, but it gives you an idea why the voting in of a socialistic/left-leaning government is accompanied by a drop in the stock market. Namaste Original link: What Real Estate Investors Should Know About Cash on Cash Return This is an oversimplifications, but it gives you an idea why the voting in of a socialistic/left-leaning government is accompanied by a drop in the stock market. Namaste Original link: http://bloggerman11.blogspot.com/2006/04/babu-and-market.html
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