The whole collapse was fueled by the excesses of the financial institutions and the professionals who were a part of them.  Technology ensured that that complex financial products like CDOs were sold to institutions, retail investors.  People with no jobs were given loans to buy property, excessive salaries for brokers, heads of major financial companies only made them greedier leading to more and more desperation in inflating sales so that they could take a bigger and fatter pay packet at the end of the month.

Prostitution, fake bills, consuming cocaine and other forms of drugs, splurging on luxury goods, bay-front properties, casinos etc was the order of the day for the bankers, brokers employed in these institutions on Wall Street.

According to this list provided by the Federal Deposit Insurance Corporation, more than 370 banks have closed down since the beginning of 2008. An estimated $14 trillion was lost because of the crisis.  And that is just a lower estimate.  The true cost of the whole crisis might never be known.  Millions of jobs lost, tens of millions of people pushed back into poverty.

All those responsible for the crime were never brought to justice, nor will they ever be. Some of the ones who violently opposed any form regulation of the financial industry which was the basic cause of this financial crisis are now sitting comfortably in the seats of power.  They are today part of the government.  Alan Greenspan, Ben Bernanke, Timothy Geithner; everyone contributed their part to the crisis not to mention Dick Fuld (Lehman Brothers), Angelo Mozelo (Countrywide Finance), Hank Paulson (Goldman Sachs & Treasury Secretary in 2006), George Bush, Bill Clinton etc were in some way or the other responsible for the mess we find the world in.

During the boom years of the 2000s, there were lots of people hectoring the Reserve Bank of India (RBI) for taking a conservative stance and blaming the RBI for not opening up the financial markets to the so-called reform that the US was doing. Its that same conservatism that shielded India and its banks from getting smashed up by the tsunami created in the US and world financial markets.

For years, the Wall Street had been my dream place to work.  I loved the whole idea of minting money the way the bankers made.  From the late 90s till the collapse in 2008, i had a rosy idea of these places. In fact, my dream job would have been working with Lehman Brothers, Merrill Lynch etc.  As i kept reading about the collapse in 2008 and the circumstances that lead to it, it not only crumbled my dreams but also made me think if i could have handled such a life of debauchery & lies that were commonplace in this industry.

Would i be able to mis-sell a product to a retail investor and then go home and sleep peacefully?  The movie raises a lot of questions about morality and your job.  For every parent who wanted their kids to join the financial industry and make tons of money, this movie is an eye opener.  Money is there in abundance, but what we need to realise is if there is the moral compass that can guide us when the excess money flows in.

Are you an investor in real estate, stocks, bonds, mutual funds etc?  Are you planning to make a career in the financial industry?  Do you know someone who works there?  This movie is a must watch and the book “The end of Wall Street” is a must read.  Roger Lowenstein writes a blow by blow account of the last few days of the collapse of the Wall Street.  Its a riveting read.

And yes, if this doesn’t outrage you, nothing will.  Because in the world of finance, there is something called TBTF (Too Big to Fail).  Just become big by hook or by crook and then the government will ensure that you will never fail.  They will always bail you out no matter how big an asshole you have been.

“If you owe the bank $100 that’s your problem. If you owe the bank $100 million, that’s the bank’s problem.” – J Paul Getty

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Anyways, once out of the workplace, i try to shut myself off and turn to my other interests.  Reading and music.  Finished reading the Andre Agassi biopic.  Its simply an awesome read.  A flawed genius with no genuine interest in the game, Agassi with his talent and hardwork became the true legend of the game.  Forced into a game he hated, by his father and sent early on in life to the Nick Bollettieri academy which Agassi describes more as a prison than a place for kids to enjoy the sport, he rebels.  Against the system, against his father, against Nick, against the sport, against media and against himself.

On his path to self-destruction he meets people like Gill (his trainer), Brad Gilbert (his coach) who pull him out of the morass he keeps digging himself into.  Not to mention his friends like Perry, JP and his own brother who form a protective cocoon around him to try shield him against the pressures.

The book is a magnificent read.  Agassi doesn’t yield, nor does he stop from pulling his punches.  I cant believe that a sportsman can write in such beautiful way so as to completely arrest you to the description of events in his life.

Love tennis, hate tennis, one thing is for sure that the book is not a put down.  Some of the games that he describes is sure to transport you to the minds of the person that is Agassi.  His sudden self doubts on his ability, his inability to finish off games, his on court rivalry with Pete Sampras, Boris Becker and numerous other players, the book is a riveting read.

I have read quite a few biographies till now.  Lance Armstrong, Louis Gerstner, Jack Welch, Warren Buffett etc…but this one sure is one among the best i have read.

I have always been a Sampras, Becker, Stefan Edberg fan, but never had any kind thoughts towards Agassi because of his constant threat to my favourite Sampras.  Reading this book has completely changed my opinion of the man.  Ya, he might be a flawed genius…but yes, he is a genius still.

The only other enthusiasm that i share with Agassi is Steffi Graf.  The only female tennis player i have ever idolised. Two champions and their offsprings are sure to be prodigies themselves, but then both Agassi and Graf decide that their kids will never be forced to take up the sport that both despised so much.

Now, that is what i call…perfect parents.  Not trying to see your dreams being realised through your kids, but to appreciate your kids own talent and let them bloom in whichever career they want to.

Open: An Autobiography
Author – Andre Agassi
Pages – 400
Publisher – Knopf

My rating: * * * * *

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Having read so much about the movie, i thought i would be lost and the movie would be confusing.  But i found it quite engaging and entertaining.  The way the movie races through the different countries, the whole concept of getting into someone’s dreams to steal information or to plant them.  Man, where do they get all these ideas from? 

Avatar on the other hand transfixed me visually.  Its stunning.  No other word comes close.  But nothing great actually when it comes to either acting or the script.  Visually the movie is in its own class and will take a long time for any other director to match it.  Now, James Cameron has announced 2 more sequels to the movie in the years ahead.  Looking at all he has done in this one, the expectations are already quite high.

The Expendables was the usual 80s Rambo kinda movies that Stallone was so good at.  Explosions, bodies getting ripped off, the heroes going to the villain’s den and blowing up the whole place, a sexy woman who is rescued by the hero just as she is about to be raped.  Would have loved to see Arnie and Bruce Willis get their hands dirty though.

Machete was similar to the Expendables.  Mindless action with lots of gore attached.  Its rare to see Steven Seagal and Robert de Nero in the same movie. But was fun.  Another mindless action flick.

Having read so much about the financial meltdown in the US and with so much interest in finance & investing, this movie was a must watch for me for quite some time.  The movie did drag a bit, nevertheless i found it engaging.  Now, it has motivated me to go search for the original that released some 20 odd years ago.

All pictures above courtesy: IMDB

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Prime Focus played an essential behind-the-scenes role in two of the biggest Hollywood blockbusters of 2009 — Chris Weitz’s “New Moon” and James Cameron’s “Avatar.” The company established itself as one of the cutting-edge firms in the visual effects business by producing about 10 percent of James Cameron’s path-breaking 3D superhit and a whopping 80 percent of the shots for the second installment of the Twilight franchise.

“’Avatar’ obviously is the biggest of all,” Malhotra said. “We’ve done some exemplary work in ‘GI Joe’ and ‘New Moon’ as well. But when you’re working on ‘Avatar’ as one of the top five vendors you have got to a lot more credible space than working on just any movie.”

The London Stock Exchange-listed company’s portfolio of work runs the gambit from “Avatar” to top Bollywood hits like the Amir Khan starrer “3 Idiots” to Splinter Films’ DVD release of a live performance by Beyonce. The company already owns the lion’s share of the Indian post-production and visual effects market, and the international business is expanding rapidly.

Full article here

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Meanwhile, AR Rahman scored another massive victory in an impressively star studded career with 2 Oscar awards.  One for the original background score and one for Original Song (Jai ho) which was written by none other than Gulzar himself.

Am awesome day at the Oscars for India as the documentary, Smile Pinki, a heart-warming tale of a poor Indian village girl whose cleft lip made her a social outcast won the award for the best short documentary.

Many people look at Slumdog as poverty porn.  I look at it as the coming of age of Indians who by sheer determination and hard work are making a mark in the world.  They dont crib over their poverty and hardships; instead work hard to rise above all that life has to offer.  There are millions of examples around us and we just need to look around.

A perfect example of the same is AR Rahman.  From having to support his family as a young man after the untimely death of his father, he took to music and his dedication to his craft has brought him to the place where he is today.

“I want to thank everyone. The essence of the film is optimism and hope. All through my life I had the choice of love and hate…I chose love and I am here” an elated Rahman said.

The composer was overwhelmed and interspersed his speech with Hindi as well as Tamil on receiving the coveted trophy.

“There is a dialogue from an old Hindi film,”Mere paas ma hai” – which means I have nothing but a mother. My mother is here, I have her blessings. I am glad she could be here” said Rahman.

He ended the acceptance speech by saying “God is great” in Tamil, something he says after winning every award.

Meanwhile, sound engineer Resul Pookutty became the third Indian to bring Oscar glory for India by winning the award for sound mixing in Slumdog Millionaire.

“I dedicate this award to my country. This is not just a sound award but a piece of history that has been handed over to me” a beaming and emotional Pookutty said while dedicating the trophy to a billion Indians.

“I come from a country and civilisation that gave the world the word that precedes silence and is followed by more silence. That word is ‘Om’. So I dedicate this award to my country” said Kerala-born sound technician.

Pookutty shared the honours with colleagues Ian Tapp and Richard Pryke.

“This is unbelievable. I share the stage with two magicians, who captured the noise and cacophony of Mumbai to create the soul stirring artful sound of Slumdog Millionaire” he said.

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Brad Haddin lived upto his captain’s reputation as a cheater by dislodging the bails with his gloves instead of the ball and had the gall to question Daniel Vettori when his actions were questioned.  Pricky Ricky Ponting followed suit in defending his co-cheatmate.  I was waiting to hear a classic in the lines of

If you are questioning my integrity, then probably you shouldn’t be sitting here.

but, unfortunately no such pearls of wisdom sprouted from Ricky’s mouth this time.  In other news, Ricky Ponting has been asked to rest. Heh.  Great news.  If Australia are really serious about mounting any challenge to South Africa or India, they seriously need to get rid of Ricky as captain.  He’s still a good batsman and commands a place in the team purely on his batting and fielding.  But when it comes to captaincy, he often looks lost when the chips are down.

Roger Federer lost in the finals of the Australian Open and that’s something iam unable to come to terms with.  Rafael Nadal seems to be his achilles heel. Nadal has quickly moved from being a good player on clay to grasscourts too.  So, Federer has lost his monopoly in Wimbledon now having lost to Nadal last year.  Am sure Federer will make a comeback and break Sampras’ record of 14 grand slams, but the delay is the killer.

Watched Vicky Cristina Barcelona last weekend.  Scarlett Johansson is yummy and so is Penelope Cruz.  I still cant get over the evil role of Javier Bardem in No country for old men and had a tough time thinking about him as a casanova in this movie.

Meanwhile, i will have some great 2 weeks starting this sunday.  Biwi ji will join me here in Singapore

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Its difficult for me to write detailed reviews for each and every movie i see because sometimes i end up watching 4-5 movies over a weekend. And by the end of the week, i have no patience to write anything about it other than rating them on a 1- 5 scale. Though if i do have the energy, i might write a few lines about them.

I soon plan to put up another page that will track all the books that i read.  Not that i read a lot.  Weekends are spent watching movies, so the only time for me to read a book is when iam travelling to and from work.  Also that depends on how tired iam.  So, most of the time, i just plug in some music into my ears and doze off (if iam fortunate to get a seat).

Above picture courtesy: Tinypic

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Best thing to happen to me in 2008

I got married.  Is there anything better than this?

Travel in 2008

I made 4 trips to India this year and contributed my part to global warming.  So, other than the regular trips home, 2008 has been a pretty dry year when it came to travel.  2009 seems more promising as i already have lots of travel plans lined up now that i have my wife as my travel partner.

Movies in 2008

Have lost count of the number of movies i watched this year.  It should be more than 150.  That means around one in 2 days.  Fortunately, i dont restrict myself to any particular genre or language,  so i have had the honour of watching some truly remarkable movies across languages

Let me emphasize that all the movies mentioned below are not necessarily released this year.  These are just some of the movies that i saw this year which impressed me.

Aamir
A Wednesday
Mithya
Oye Lucky Lucky Oye
Jodhaa Akbar
Tahaan
Subramaniapuram (Tamil)
Dasavatharam (Tamil)
Gamyam (Telugu)
Slumdog Millionaire
Dark Knight
Children of Men
Death at a Funeral
Before Sunset
Taken
21
3:10 to Yuma
Transsiberian
Rebel without a cause
The Towering Inferno
In Bruges
Traffic
Gran Torino
28 weeks later
Rang-E-Khoda (Colour of Paradise) – Iranian
Bacheha-Ye aseman (Children of Heaven) – Iranian

Books in 2008

Kaoboys of R&AW – B Raman
Eleven Minutes – Paulo Coelho
Reluctant Fundamentalist – Mohsin Hamid
Freakonomics – Steven Levitt
Barefoot Investor – Scott Pape
Undercover Economist – Tim Harford
It happened in India – Kishore Biyani
We are like that only – Rama Bijapurkar
The World is Flat – Thomas Friedman
Intelligent Investor – Benjamin Graham

Investments in 2008

At the begining of the year even though there were predictions that the world economy was in for a rough ride, no one would have believed if the markets would be at a situation where it is now.  From 20,000 to 9000, the Sensex has been on a mother of all crashes.  My portfolio is totally in the red.  But then as some great soul said…

Buy when everyone sells and sell when everyone buys

Iam buying and have built up quite a bit of my portfolio by now.  I averaged out quite a lot of my losses and surely dont need the market to climb back to 20k to see a positive portfolio.  I still cant believe why people keep advising me that i should start buying only when the market is stable.

How does one judge when a market turns stable?  The worst thing you can do is to time the market.  Its practically impossible for anyone to guess the top and the bottom of the market. The only thing a long term investor can do is to religiously invest a bit of his savings in the market and cash out when he hits paydirt.

Career in 2008

Nothing interesting happened in my career during 2008. In fact, hanging on to the job one has is the mantra in this gloomy economy. In fact this is a good time to start studying and get certified in some courses that can make a difference when the economy rebounds.

My resolution for 2009

…. is to have no resolutions

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Youtube link

Valkyrie

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Youtube link

Che

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Youtube link

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Interesting read.  Read the full article here

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