The fact that the stock markets can react so violently is an ominous reminder that all is not well with them. – quoted from The Hindu’s editorial dated 18th May, 2004.
While the media makes hype out of the millions lost due to stock market crash, The Hindu‘s editorial was mature with a lot of respect to the coming in governement and also without denouncing the outgoing government.
Thats a quality and unbiasedness required in this declining standards of modern day media. With headlines and coverstories discouraging every single prospective investor, the media is racing towards rock-bottom honesty.
It’s not the reporting of such news is getting on the nerves but transforming the news as nail-bitting thrillers to grab eyeballs of the viewers is sickening. Sickening. Read The Hindu’s editorial named Black Monday, that clearly explains the way of putting things.
13 responses to “Black Monday”
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That editorial was actually a biased commie hogwash.It had accused the FII’s and manipulators and looked for raising oil prices…
The stock market being fuelled by fears in not something that suggests all is not well……It is the rational response of an investor who is in India not for acts of charity but to earn profits…… stock prices are merely the Net Present Value of a future profit stream, discounted appropriately. The value is directly tied to economic growth, with the left shouting crap it is bound to crash.
Hindu is becoming pathetically commie by the day…earlier atleast the bias was subtle and therefore excusable in the name of opinion. But now it is blatant…..and illogical.
Hmm..that isn’t exactly what I think. Probably if you recognize the vicious circle of poor, you might also think that way. capitalism / communism doesn’t matter to us.
What’s good should be advocated and hence this editorial in my opinion is aligned towards that goal.
What is good?…….truth matters. I know it’s an opinion, but it also states a fiction in the name of facts – either because of complete lack of understanding of the markets or because of a refusal to acknowledge that.
And could you let me know how a commie rant of something not being well with stock market becomes good? : It was the perfect rational response, and there was nothing wrong about it – as I have already mentioned. And please enlighten me what has been advocated? and how that is good!!!!……
By the way, this socialist idea of “understand poverty to think different” is something I find very disturbing. Firstly, I do not need to understand poverty to understand market logic : all I need to know is that each player is an individual looking after the interests of his/her own……being rich or poor is immaterial and an inconsequential matter of detail.
And as has been shown all over the world, the way to remove poverty is not by a top dow n approach of creating equality first, but by creating wealth.
Nilu, By enlightening the public or the readers that there is something fishy about the current scenario of stock market the editorial gives out it’s opinion.
I don’t buy your argument that it is a commie rant. Hindu has never identified itself as a commie nor it has preached only communistic values negating the capitalistic approach.
Long timers of Hindu would say that Hindu has become more capitalist along with India. So a commie rant is again your opinion of the editorial opinion. At this juncture it might be just a commie rant but a larger picture would prove it isn’t as tiny as a rant.
Also you can’t push everything what Leftisits says as crap.
Also if you could read between the lines of the editorial, when it says that such a acute response in stock market in fishy it means there is an external hand that is creating this. And we know the investors now doubt BJP for that.
In a typical fashion of “The Hindu”, you have just stated your bias – without reason.Read you comment again and see for yourself if there is a single “fact”.
And dont’ get me wrong, I still read the Hindu everyday though I totally hate it – and am one of those long timers : if 15 years can be called that. I have only found declining standards – or maybe the opening of my thoughts.
And by the way : to support your argument, can you show one peice on the Hindu – be it editorial or centre page article or even front page news – endorsing the idea of “creating wealth” as an option to removing poverty?……it is just that folks in Tamil Nadu are so brought with their early morning Hindu and Coffee that you refuse to think outside.
And finally see for yourself what you are using as a shield : “All that leftists say cant’ be crap”……a typical Marxist defence.
And investors doubt BJP?????That again is a typical commie rant. And shows how you have failed to understand the working of the free market.
Each investor is a rational entity who seeks his own advancement – a political party when it is not in power and cant’ be blamed for yesterdays’ crash . And if there were BJP forces in why did the market bounce back?????????????
No investor would lose his money for the sake of proving a political point : especially when the magnitude is of a few billion Rs. Please understand, economics decides where the investor would invest – not a political party out of power.
I guess I’m reading the editorial wrong. Nowhere do I see it advocating ‘a raise in the oil prices’. And I’m not sure whats the accusation against the FII’s is?
The editorial IMO is just speculating on the impact of the market on the economic policies of the government. It goes on to explain the various factors that led to market freefall and states that the freefall was just not because of the formation of the new govn. Nowhere does it state or advocate the policies that the new govn must follow. Where in the editorial do you find a communist approach? Please read it again and spare us your vitriol.
Anyway (sorry to digress from the subject) the BJP might have had a stable govn, but it had its flaws. For one, they totally neglected the Planning Commission. The period of the BJP govn was the only time no new 5 year plan was introduced. They also neglected the defence. Come on now, how long would it take to finalize the deal for trainer jets? Because of this we lost valuble planes and pilots.
Don’t get me wrong, I voted for BJP in the last election and would have done in this too if I had the chance, but IMO it is a good time for change in the centre.
I quote the Hindu….
“There were other negative factors at work. The persistently high global oil prices (they went through the roof on Monday), the ongoing recovery in the United States leading to a reverse flow of capital, and the general decline in Asian stocks have all contributed to the negative sentiment. Foreign institutional investors and portfolio managers the main props to the Indian markets have been net sellers for almost ten days before May 13.”
so why dont’ u read it first?
Sorry, couldn’t get what was commie about the statement that u quoted from Hindu? It says that since the investors are now speculating on more profits from some other market [a.k.a the US], they are pulling out their money from the Indian market, right?? So what was commie about it ?
I totally agree with Lazygeek, that the Hindu seems to be one of the fast declining sources of media that talks unbiasedly. And pray Nilu, where on earth does the editorial smack of commie hogwash??
Infact the Hindu suggests that to reduce this kind of volatility in stock markets, one option that can be thot of – ” Reducing the overdependence on foreign institutional investors has long been thought of but the investor base continues to be lopsided”, which is perfectly logical. If you have more of small investors participating in the market, no one will be insane enuf to start selling off shares just because the CMP has not yet come out or because the commie people are talking crap.
You mention its a perfectly rational response. No way it is. To quote Hindu again, “The market operators are evidently putting tremendous pressure on the shaping of economic policies in a sharply changed political context”. Very much true. There is immense danger if a FII starts dictating the way economic policies are to be shaped by manipulating the stockmarket in this manner.
The reason why that part alone was quoted was because of the questions “lazyidiot” raised.
Read it fully, and it shows a lack of understanding of capital markets – if you are still not convinced, take Eco 101.