I never knew that my fate and that of the world’s economy was so interlinked. I mean being my modest self, I never-ever thought of the co-relation between the two. After all, neither I’m the finance minister of the country nor do I manage any investment (either mine or that of others). Complex things such as derivates were long left behind in college corridors and chemistry labs, and debts were relegated to coins that I sometimes borrow for smoking cigarettes.
So all in all I had no reason what so ever to worry that such an insignificant character like me will be bludgeoned by the grammar of economics - used, distorted and rehashed – at the global platform. For I was living in my small world, fighting the inflation of my own dreams and goals until the day my boss spoke – Melt Down. The explanation of this word looked like a rip off from Paulo Coelho’s Alchemist – the much abused - Universe conspiracy theory.
I was aghast. It had been only two days since my stock had surged. I wasn’t a penny stock before but neither a blue-chip company and I had no reason to fear of sudden boom or crash. I was under the impression that my fundamentals were strong. I was not to be a short-term story. A little slackening of the bull shouldn’t have worried me or those investing in me. Also I was proud that the rating agencies have given AAA+ to me in the last two financial years.
It looked like my boss had just read Harry Potter and was trying to explain me one of the wizardries of Rowling. But my boss being from the land of Amartya Sen (check wiki for Sen’s details) the explanation was much simple. In one sentence - The company was now forced to de-leverage because of the prevailing liquidity crunch in the market.
Thankfully, I was told that still I’ve not been classified as a NPA or simply put bad asset. The boss further explained that only because the situation is so grave (and believe you may, the face of my boss just showed the right expressions) that unfortunately I have been bundled along with others as CDOs or collateral debt obligations. Henceforth, as of now my Boss advised in the personal capacity as a nice boss (yeah, most of us don’t believe but some bosses are nice) that I’m left with two options.
For a moment I was stumped almost like the Australians who don’t have a clue what stance to take on a turning pitch. Before I can mutter something, my boss continued with the two options, which were – first – I can hope against hope that the federal/central government (that’s my super boss) announces a bailout package for mortals like me.
The second option – which smells of a distant future – I better wait and hope for a revival. But as I said, my boss is one of those rare nice boss, the third advise was more genuine – seek out a Private Equity/ Venture Capitalist who can identify or nourish my otherwise now lacklustre, dated and over-rated talent, who shows interest in my valuation and then perhaps either one or the other company may acquire me or force my parent company to revaluate me in new perspective.
Struggling with this heavy overdose of economics and global affairs, I managed to ask, my near term options. The boss face showed no expression. Sentiments, my dear, Sentiments is what the boss echoed.
Dejected, confused, perplexed, annoyed and harrowed I went to a senior colleague, asking for sane advice. The person started with a disclaimer: Views expressed are personal. Well, I said, Go On. I was told that since I have no FII behind me and FDI in my career has been limited, my situation was no better than a Subprime in the US of A. So, I should be happy that I’ve been bundled as CDO, because that would mean that my fate has been now associated with the world economy.
I was told that the Prime lending Rate (PLR) is an all time high, so no organisation will offer me anything. This has been due to high inter-bank overnight lending rate. This simply means the liquidity crunch is here to stay. The rupee further depreciation hasn’t helped my case either because foreign exchange fluctuations have stalled the plans of many. Some people also showed me newspapers and websites, which had only one word - layoff.
I’m now told that there is a plan to infuse more liquidity in the system. This may happen as the global economy settles. Mornings, I watch the markets though I have no interest in the scrips that are traded there. Nights, I hope the bailout package will come soon. Surprisingly this time other people unsuccessfulness made me...
