All about Business and management

March 17, 2009

AIG bonuses and corporate America


AIG is not the only corporate company which gave away huge amounts to their executives.
Because of public bail out, bonuses to AIG executives became public.
But what about other corporations who already distributed various bonuses to executives in
this rough time when main street is going through difficult time. What so un usual about these executives? what different work do they do other than comman man do?

This is not only about AIG but this is about corporate world. Executives are paid with huge bonuses, money is spent
on unnecessary projects and other spendings. There is no direct oversight on these spendings.

With your hard earned money, any investment you make in stock market, do not count on it, basic assumption is you are gambling. You might get it back or may not, you can not count on it. You do not know how it is been used.

Common man has to decide whether to gamble or keep money for future survival?
Save money for your future.

Jagdish Hiray


November 24, 2008

Is Mr. Paulson too late?

Filed under: My Opinion — Jagdish Hiray @ 9:40 pm
Tags: , , ,


            Yesterday first time I noticed US treasury secretary Mr. Paulson started talking about helping consumers and trouble homeowners. Do former CEO of Golman Sachs and supporter of so-called ‘free market’ economy know consumer is important element of economy? Consumer is building block of this economy. This is the consumer who promptly wakes up in the morning, works hard and feeds family. This consumer if ‘atom’ of this economy; this economy is built on millions of atoms ‘consumers’. Not all of these consumers have investment in stock market nor majority of them have 401K accounts. But this ‘consumer’ was ignored, focus was given to stock market and efforts were seen to secure foreign investment in stock market.


            Today ‘consumer’ is dead. Money stops flowing in ecosystem of this economy. You do not have to wait for report to come showing banks tighten lending policies, banks stopped lending to consumers… You need to be in mall, in wal-mart, in offices, in restaurants, at gas stations to see how consumer is suffering what is its pain. You need to pass by through towns to see forecloses happening in communities, you need to feel what you feel when you vacant your home with heavy heart …


            Too late to rescues … regulators were waited too long to watch economy get recovered, expecting consumer to suffer and stand again to keep life going. Yes, this time consumer will stand up again but with different vision and mission. New born consumer will stop using credit cards and unnecessary spending, will refuse to borrow money from financial institutes, will not invest in stock market to pay for huge CEOs compensation and fund manager’s expensive mortgages, will try to increase savings and refuse to gamble in stock market. Will be happy to get small amount of 401K returns with peace of mind.


            There is enough of free market and capitalism. Henceforth consumes will drive market not bankers and traders.


November 23, 2008

Microsoft Yahoo merger good for tech sector?

Filed under: My Opinion — Jagdish Hiray @ 7:39 pm
Tags: , ,



            There is lot of buzz around Microsoft and Yahoo merger. Microsoft has clearly denied possibility of taking over Yahoo Inc. Any one who is using Microsoft products and watching Microsoft’s business will agree that Yahoo will loose its characteristics if Microsoft takes its business over.


            There is couple of things to consider about Microsoft. First of all Microsoft is still struggling with its online search engine Microsoft seriously lacks expertise in search area.  Second point to consider, possibility of success merger and keeping Yahoo in business after merger. Looking at past, Microsoft failed to keep hotmail brand name in emai business and could not give head to head competition with gmail. Chances that Microsoft-Yahoo merger a success is close to impossible. Most software companies like Microsoft lack proven management skills to make such acquisition success. Next, Microsoft- Yahoo merger, in fact will benefit Goggle as possibility of retaining Yahoo employees is going to be big challenge. Which in turn will affect Microsoft negatively.


            Therefore, there are serious practical reasons why Microsoft denying Yahoo acquit ion. It is not only matter of existence of Yahoo but also posses serious concerns to Microsoft existence.










November 22, 2008

City of Toledo and $700 billion bailout plan

Filed under: My Opinion — Jagdish Hiray @ 9:02 am
Tags: , , , , , , ,


This is story about the city of Toledo in state of Ohio. In around 1980s, city of Toledo started offering incentives and concessions to attract new businesses as well as to existing business to stay around area. These incentives were ranging from funding these businesses to exceptional tax breaks. In couple of years city has attracted many known industries such as General Motors and Chrysler. When state of Ohio authorized an Enterprise Zone program to create industrial base, city of Toledo was ahead to take advantage. The main goal was to create more new jobs and prosper.

However, in next couple of decades, study found out that new jobs were not created as expected, new jobs were moved to different locations, jobs were outsourced and companies failed to keep their promises. Companies took advantage of tax breaks but failed to create new employment. The government spent over $280 million dollars to bring and keep new Chrysler plant in Toledo; in reality it caused more job losses than creating new jobs.

Study found out that there was no monitoring mechanism setup to monitor how these companies were using incentives and whether they are being appropriately utilized. Companies were not accounted for their promises. Tax breaks were gone to hundreds of companies that closed or reduced their facilities. There was no accounting for how public money was spent.


Today we have similar situation. In today’s economical crisis, we as people of this democratic country represent the city of Toledo. We have public bail out money $700 billion dollars approved by congress on behave of tax payers. Auto makers and various other well know companies of this so called ‘Capitalist’ system are coming forward to ask for help to keep their businesses running and hence to keep jobs for thousands of workers. Toledo (here we people) has second and probably last chance. If we want to help these industries to keep our jobs and keeps economy flowing, we have to get answer for some basics questions.  Are we going to have monitoring mechanism this time? Who is going to monitor this mechanism? Who is going to review their business plan (may be industry experts)? What if they do not use people’s money as promised, what will be penalty? Who is going to take personally responsibility? …


Toledo has money to fund but still fighting for survival … dark side of ‘Capitalism’.



June 29, 2008

Oil crisis and we!!

Filed under: My Opinion — Jagdish Hiray @ 12:43 am
Tags: , , , , ,


                     In last few months oil price at pump suddenly gone up and we do not see any signs of coming it down. It made life essentials expensive forcing people to make choice between food and commute to work. Every smallest news affecting oil supply was considered to hike crude oil prices but major drop in oil consumption in past 17 years by people, increase in price of oil in major oil consuming countries to cause decrease in oil consumption, and decision to increase production of oil by major oil producers, did not caused a penny of decrease in the price of crude oil. Is it not mysterious? No body has explanation nor wants to explain people why it is so? Regulators once again failed to avoid ‘oil boom’ created by so called ‘capitalism’. Once again common has to pay price for it.


This reminds me people on ‘AXIOM’ space cruise from WALL-E movie. People’s life depicted on “AXIOM” space cruise is very much synonymous with our lives today; our lives are no more independent. This movie not only gives strange glimpse about our future but uncovers truth of our current lives.


How? Take couple of seconds to think, compare our lives with those on space cruise shown in the movie. Our lives are totally dependent on oil driven transportation, we are used to large luxurious cars sold by motor companies as per their business profitability model, and we are hypnotized by easily available loans and paralyzed by accumulating debt. For generations we are traditionalized by junk food chain. We are trapped in the web woven by corporate world under name of ‘capitalism’.


Our social position is not at all different than people on space cruise shown in the movie. Those people lost their existence, lost their thinking and could not think of anything else other than their own comfort. Are our lives different than those people from space cruise?






December 1, 2007

Housing market crisis

Filed under: My Opinion — Jagdish Hiray @ 1:23 pm
Tags: , ,

            Housing market crisis was very well expected, however everybody tried to took advantage of this boom. I got introduced to this market first when I was looking for my first house to buy. What I had seen, experienced was unbelievable as most of us would had. This article is based on my true observations and real facts I came across in this line of business.  

            Many of loan agents and realtors were totally unaware and lacking basic knowledge of rules and regulations of California’s Department of Real Estate. Many of them never passed license exam from state. Some of them were even not eligible to work legally in this line of business. Brokers were hiring people without proper eligibility and state license requirements. There was solid chain of loan agent, broker, and account executive from lenders and underwriters. These people can do anything to get loan done or deal get done for monetary benefits. They used to charge high fees and loan program for their benefits. Fees in turn used to get added into homebuyer’s principal amount of loan. Everything was well set to extract money from homeowners’ loan amount. Realtor’s created hypothetical conditions to increase bidding on houses during boom to get maximum highest bid possible to get higher commission. 

            These people sold loan program, which benefited them not homeowners, to get more commission from these deals. Many lenders came with 1% interest rate program to lower monthly payments, which was very popular because loan agents were getting more rebate on those programs from lenders. There was no limit to the grid. Many young people got attracted towards this business because of this easy money. There were thousands of people appearing for real estate license exams every weekend. Poor homebuyer was confused and was surrounded by these greedy people, was helpless only to fulfill dream of life: owning own home.  

            Due to hypothetical increase in home prices, they were constantly pressured by real estate advertisers to refinance their loan amount to refinance and to spend particularly during holiday seasons and for remodeling. That caused increase in loan amount and in turn more burden on homeowners. But it was benefited to real estate community; they were becoming richer and richer day-by-day, spending money on their expensive vacation and expensive cars at expense of common man’s loan amount.           

            Surprisingly, not a single regulatory organization took steps to research the cause for this boom and took proactive preventive steps to control these behaviors. Once more, common man in this country suffered under the name of ‘Capitalism’. This is very similar boom as we have seen in 2000, so-called regulations and rules were implemented after boom busted, however not sure how many of them responsible for that really got punished.  

            Real estate boom and its effect are worst than ever. Even decrease in short-term rate is not going to help. Increase in oil prices had made this situation worst, and made common man’s life more challenging than ever. 

            This time common man has to be very careful. Save as much money as you can to face future financial challenges, time ahead is very promising and one should not expect any honest and positive efforts from so called ‘Capitalist’ economy, to think about common man.


June 12, 2007

Google and its SteetView : My Opinion

Filed under: My Opinion — Jagdish Hiray @ 4:38 pm

           Recently Google rolled out street view and it has gathered attention from around the world, people from all industries. There have been reports on public privacy, some groups rated Googlelowest maintaining public privacy, people got scared walking on street, some people spenttime digging google earth to have fun using StreetView. Industry reports are saying Google does whatever it can to find new avenues to boost its advertise revenues.            

            However, do we expect this from a company whose stock is continuously going high in last couple of years ? Do we expect as investors to make use of our money to invest in tools likeStreetView? Does developing such tools adds value to company portfolio, value to its services?Does not it seem to be immature way to developed and roll out such product? Whenever I think aboutStreetview, it always comes to my mind, what value this service adds to for public, as a product ?Is not it a waste of investor’s money, resources and efforts ?        

                Time has come for investors to take a close look at Google and its strategies. My strong saying is “Google is another bubble” and Wall street has to learned from 2000 bubble burst, common people are the ones who gets burned when bubble burst …  


Jagdish Hiray


(these are my own and sole opinions and are expressed solely from my heart) 

Create a free website or blog at