We now have 97 subscribers. If 2-3 of you could forward this on to 2-3 of your friends and if 2-3 of them subscribe to the weekly newsletter on EverFin.in, we will hit a century! Pretty please? ![]() Issue #1 Good Morning player!
Today is launch day - Issue #1 of EveryFin's weekly newsletter is here.
Equity and gold markets rattled investors this week. If you were struggling to get a good night's rest, you were not alone. Someone else who was also struggling to sleep this week was Virat Kohli - dropped 2 catches, scored ONE run in five balls, was fined for slow-over rate on thursday..! Rattled himself! I have only one thing to say to both Virat and you - One week, one match, don't matter. Long-term is the mantra.
IN TODAY'S NEWSLETTER
QUIZ The circular building in this picture is the Indian Parliament.
What is the triangular one right next to it? ![]() MARKET UPDATE SENSEX NIFTY 500 Brent Crude Gold (per gram) 37,388 9,156 $41.92 Rs.4,985 -3.7% -4.2% -1.4% -3.4% NEWS IN BRIEF
IN LESS THAN 200 WORDS (1/2)
Banks suffer a big dent cuz' of FinCEN ![]() Here is what it is - Let's say an Indian diamond merchant transfers USD $200M from India to UK. In this transaction, an Indian, a British and an American bank are usually involved. And everytime an American bank facilitates a US dollar transaction like this from an originator or to a receiver of suspicious background, they file a report at the US Financial Crimes Enforcement Network (FinCEN) called suspicious activity report (SAR). A former official at FinCEN leaked data from over 2,100 SARs and these SARs show banks willingly facilitating transactions involving money laundering worth over USD 2 trillion.
DATA SHOWS THAT OVER 3,200 TRANSACTIONS FROM DODGY SOURCES VALUED AT OVER $1.5B WERE FACILITATED BY INDIAN BANKS.
The biggest culprit of all? HDFC. It sent >$350M outside the country. Who is involved? We don't have the full list. But the usual suspects are all there - companies involved in 2G scam, Rolls Royce bribery case, Aircel-Maxis case, infamous diamond merchant and a sponsor of an IPL team. But most of these are already on the roasting grill with CBI/ED. So we have learnt nothing new. But what is surreal is this - With all the paperwork involved, it feels as if it is harder to send $1,000 outside the country than $300,000,000. IN LESS THAN 200 WORDS (2/2)
India's Rs.100 Trillion debt 'not-a-problem' ![]() Indian government debt crossed Rs.100 Trillion at the end of Q1 FY20. That sounds like a lot of money, but it isn't. First up, most of the money the government owes is internal debt (95%) - owed to its citizens as against external debt which is owed to foreigners. Math says that the government owes each Indian ~Rs.70K. Compare that with India's per capita income of ~Rs.1.2 Lakhs/year - That 70K payment is only 0.6X our average annual income. The same figure for the United States of Amrika is 1.3X. Now compare that again with the Indian central government's total revenue per capita (total receipts/total population) last year of ~Rs.16K - If the government spent money on nothing else, it would pay its debt all back in about 5 years. The same figure for the US government is 8 years. A full 60% more than our Bharath Sarkar. Not bad, is it?
At a household level, debt is usually paid back by spending less & saving more. The governments also have to do the same. However, they have one special privilege that we dont have - The ability to create money out of thin air through central banks and pay the debt back. This is called debt monetisation and it usually leads to inflation, depreciation in currency value and a loss of trust amongst investors. As I write this, the US government is increasing money supply like never before. COVER STORY
BCCI, IPL and Cricket in India ![]() The IPL has literally been a game changer for world cricket and one of BCCI’s proudest achievements. Just 2 years into the IPL series, Sports magazine valued the league at $1.6Bn. Today that figure has quadrupled. The media broadcast right for IPL was won by Sony Max & World Sport Group for Rs.4,000 crores for a period of 5 years in 2007. This was resold in 2012 for Rs.8,000 crores and then in 2017 for a staggering sum of Rs.16,000 crores.
But with more money in its coffers, the BCCI became a far more powerful and aggressive agency. For years, it has refused to pay taxes claiming it is a charitable organisation. It is fighting legal battles with at least 15-20 different former partners. It is mired in politics and characterised by utter chaos internally. Today's cover story takes you through a journey, one seen from the perspective of an outsider about an agency that is trying to use its money power to become more and more assertive. IN CASE YOU MISSED IT...
A FASCINATING Drama on Investing - In 3 Scenes ![]() Let us assume that you had Rs.1 Lakh saved up on the 1st of January 2010. There are 3 people you are taking advice from on where to invest.
A decade later, who was right? Hit the link to find out. ANSWER TO QUIZ The NEW Parliament building coming up in 2022. Tata Projects won the contract earlier this month to construct it a cost of Rs.862 Crores. READ/WATCH/LISTEN
From the writer in me, to the reader in you ♥
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