Recession Unplugged

Hi all,

Today i am commenting on a topic which is prevalent everywhere and which is the most happening topic in recent times which affects almost everyone from business men to working class to students to home maker and even its affecting animals in a good way that now they are feeling happy as they are not the only ones getting exploited :-P.

The intensity of this recession is such that it has been taught even to nursery children to make them aware reduce cost and reduce their expenses on toys and playing material. Everyone is feeling the heat because of this black hole thing which is eating away people's peace and harmony.

In the past also we have experienced similar kind of recession and in 1930 it was even called depression because of its tenure and it lasted for some 10-11 years. We have experienced Oil crisis during 1970's and Dot com bubble in 2001 and we came out of all these crisis without learning anything. And nowadays people are predicting these recession to happen after every 7-8 years. 

And this time recession is a bit different and people are scared that it doesn't turned out to be a depression. Though a number of factors are responsible for this saga and lot many industries are getting affected by this dramatic thing but few factors stand out in making this recession a successful one.

The first thing that happened to make it work is the housing boom which happened in US economy. The Irrational Exuberance of a housing bubble created the climate in which homebuyers became eager to take on mortgages that they could not possibly afford and banks and investors were willing to make loans that couldn't be paid back. This bubble got bursted soon and this was the first nail in the coffin. and soon after lot many things happened like Investment banks bankruptcy automobile companies bankruptcy.

But as we look deep into this bankruptcy bore well,this recession is affecting all the luxurious objects and companies and people.

Lets take the case of GM motors,As they were manufacturing only luxury cars and didn't even thought of making small cars for common man,they are feeling the heat and are bankrupt now. And against this take the case of Maruti Suzuki India Limited,their sales even plummeted during recession because they made cars for common man and made small cars.

There are mainly two factors resulting in GM bankruptcy is the Oil crisis in 1970 because now people want small cars with good mileage rather than white elephants manufactured by GM and Real estate bubble. Now people don't have space to park their big cars and therefore the demand for small cars went rocket high with the Toyotas,hondas Suzukis stealing the show.

                                                     Take the case of B school students which we are more interested in,As investment bankers job was a high profiled job and can earn you lakhs in a month but that job is now a low profiled job and young talent is loosing their jobs on daily basis in investment banking because of the nature of the job. Now take the case of Commercial banking job against investment banking,banking sector is booming and jobs are not reduced and their demand will never went down.

                               Before this recession,Each and every B school graduate was getting the job whether he was skilled or not and this also resulted in a bubble where students were earning more than their expectation and skill set. Now what recession has done is that it helped in bursting this bubble and now students have to earn a job rather than take it for granted and they get their job and salary based on their skill set. This recession in a way have streamlined the society and businesses across world.

                                US which was under the impression of taking away the world in a different direction is now looking down the barrel and trying hard to streamline their economy.

So in my view,This recession in a way have streamlined different industries and helped in bursting different bubbles and helped people in realizing their worth in this world which is still having a lot of opportunities to ponder on.

I will continue my Fun quotient part in my next post. Till then keep waiting and commenting on my post.It helps me in posting without hiccups.

Fun Quotient @ IIM K though unorthodox

Hi Friends,

Here i am in front of you all again for the new season of my MBA.I spent almost one year in one of the most beautiful campuses in India.I will share my views and experience of the past one year of my MBA.

Exactly one year back,I joined IIM K with so many aspirations and full of energy which is unmatched and unparalleled  even till now. How Enthuthiastic we were at that time,i only can imagine at the moment.We a group of around 50 people were called for Preparation batch for English and Math classes but m still doubtful whether anybody learned anything in those classes though i am pretty much sure that i unlearned some of my fundas in those classes :-P.We had a maximum of one class during that one week and in the spare time we used to visit places and play volleyball on a pretty risky and customized court with full of risk involved in playing balls.

                     One fine evening we all were playing volleyball as always and that day some Unwanted things happened.A notorious chap named Dhruv while playing a shot couldn't resist falling freely from a decent height just to make the ball cross the other side and for no reward or prize money :-) .and when we reached the spot where he fell down,we were shocked to see him lying down and making some serious noises.We were feeling helpless and as we were new to college,We called our seniors to help us out and book a taxi so that we can take him to a hospital. Luckily , though that guy has been unlucky all throughout his first year,was operated on time. And our chances of visiting Wayanad beach on weekend went in vain. And we till today are striving hard to visit that place.

                                                              After that busy fun filled week,the real fun began in the subsequent weeks which followed that first week. Those weeks included official ragging by seniors,Hostel ragging and lot many parties and in the spared time we studied very little and took studies as secondary which should have been the obvious primary choice.

I will take you through my first year at IIM K in my subsequent posts to follow.

 till then good bye and enjoy life !!!