Sunday, January 4, 2009

CHRONOLOGICAL ORDER OF THE BOOKS OF THE NEW TESTAMENT

While no arrangement of these books can be made with absolute confidence, the following dates are sufficiently reliable to serve the purpose of the Bible student.

James - 50 A.D.

http://www.usccb.org/nab/bible/james/intro.htm
http://www.usccb.org/nab/bible/james/james1.htm
http://www.usccb.org/nab/bible/james/james2.htm
http://www.usccb.org/nab/bible/james/james3.htm
http://www.usccb.org/nab/bible/james/james4.htm
http://www.usccb.org/nab/bible/james/james5.htm

First Thessalonians - 52-53.
http://www.usccb.org/nab/bible/1thessalonians/intro.htm
http://www.usccb.org/nab/bible/1thessalonians/1thessalonians1.htm
http://www.usccb.org/nab/bible/1thessalonians/1thessalonians2.htm
http://www.usccb.org/nab/bible/1thessalonians/1thessalonians3.htm
http://www.usccb.org/nab/bible/1thessalonians/1thessalonians4.htm
http://www.usccb.org/nab/bible/1thessalonians/1thessalonians5.htm

Second Thessalonians - 52-53. http://www.usccb.org/nab/bible/2thessalonians/intro.htm
http://www.usccb.org/nab/bible/2thessalonians/2thessalonians1.htm
http://www.usccb.org/nab/bible/2thessalonians/2thessalonians2.htm
http://www.usccb.org/nab/bible/2thessalonians/2thessalonians3.htm

Galatians -55.
http://www.usccb.org/nab/bible/galatians/intro.htm
http://www.usccb.org/nab/bible/galatians/galatians1.htm
http://www.usccb.org/nab/bible/galatians/galatians2.htm
http://www.usccb.org/nab/bible/galatians/galatians3.htm
http://www.usccb.org/nab/bible/galatians/galatians4.htm
http://www.usccb.org/nab/bible/galatians/galatians5.htm
http://www.usccb.org/nab/bible/galatians/galatians6.htm

First Corinthians - 57.
http://www.usccb.org/nab/bible/1corinthians/intro.htm
http://www.usccb.org/nab/bible/1corinthians/1corinthians1.htm
http://www.usccb.org/nab/bible/1corinthians/1corinthians2.htm
http://www.usccb.org/nab/bible/1corinthians/1corinthians3.htm
http://www.usccb.org/nab/bible/1corinthians/1corinthians4.htm
http://www.usccb.org/nab/bible/1corinthians/1corinthians5.htm
http://www.usccb.org/nab/bible/1corinthians/1corinthians6.htm
http://www.usccb.org/nab/bible/1corinthians/1corinthians7.htm
http://www.usccb.org/nab/bible/1corinthians/1corinthians8.htm
http://www.usccb.org/nab/bible/1corinthians/1corinthians9.htm
http://www.usccb.org/nab/bible/1corinthians/1corinthians10.htm
http://www.usccb.org/nab/bible/1corinthians/1corinthians11.htm
http://www.usccb.org/nab/bible/1corinthians/1corinthians12.htm
http://www.usccb.org/nab/bible/1corinthians/1corinthians13.htm
http://www.usccb.org/nab/bible/1corinthians/1corinthians14.htm
http://www.usccb.org/nab/bible/1corinthians/1corinthians15.htm
http://www.usccb.org/nab/bible/1corinthians/1corinthians16.htm

Second Corinthians - 57.
http://www.usccb.org/nab/bible/2corinthians/intro.htm
http://www.usccb.org/nab/bible/2corinthians/2corinthians1.htm
http://www.usccb.org/nab/bible/2corinthians/2corinthians2.htm
http://www.usccb.org/nab/bible/2corinthians/2corinthians3.htm
http://www.usccb.org/nab/bible/2corinthians/2corinthians4.htm
http://www.usccb.org/nab/bible/2corinthians/2corinthians5.htm
http://www.usccb.org/nab/bible/2corinthians/2corinthians6.htm
http://www.usccb.org/nab/bible/2corinthians/2corinthians7.htm
http://www.usccb.org/nab/bible/2corinthians/2corinthians8.htm
http://www.usccb.org/nab/bible/2corinthians/2corinthians9.htm
http://www.usccb.org/nab/bible/2corinthians/2corinthians10.htm
http://www.usccb.org/nab/bible/2corinthians/2corinthians11.htm
http://www.usccb.org/nab/bible/2corinthians/2corinthians12.htm
http://www.usccb.org/nab/bible/2corinthians/2corinthians13.htm

Romans - 57-58.
http://www.usccb.org/nab/bible/romans/intro.htm
http://www.usccb.org/nab/bible/romans/romans1.htm
http://www.usccb.org/nab/bible/romans/romans2.htm
http://www.usccb.org/nab/bible/romans/romans3.htm
http://www.usccb.org/nab/bible/romans/romans4.htm
http://www.usccb.org/nab/bible/romans/romans5.htm
http://www.usccb.org/nab/bible/romans/romans6.htm
http://www.usccb.org/nab/bible/romans/romans7.htm
http://www.usccb.org/nab/bible/romans/romans8.htm
http://www.usccb.org/nab/bible/romans/romans9.htm
http://www.usccb.org/nab/bible/romans/romans10.htm
http://www.usccb.org/nab/bible/romans/romans11.htm
http://www.usccb.org/nab/bible/romans/romans12.htm
http://www.usccb.org/nab/bible/romans/romans13.htm
http://www.usccb.org/nab/bible/romans/romans14.htm
http://www.usccb.org/nab/bible/romans/romans15.htm
http://www.usccb.org/nab/bible/romans/romans16.htm

Philippians - 62-63.
http://www.usccb.org/nab/bible/philippians/intro.htm
http://www.usccb.org/nab/bible/philippians/philippians1.htm
http://www.usccb.org/nab/bible/philippians/philippians2.htm
http://www.usccb.org/nab/bible/philippians/philippians3.htm
http://www.usccb.org/nab/bible/philippians/philippians4.htm

Colossians - 62-63.
http://www.usccb.org/nab/bible/colossians/intro.htm
http://www.usccb.org/nab/bible/colossians/colossians1.htm
http://www.usccb.org/nab/bible/colossians/colossians2.htm
http://www.usccb.org/nab/bible/colossians/colossians3.htm
http://www.usccb.org/nab/bible/colossians/colossians4.htm

Philemon - 62-63. http://www.usccb.org/nab/bible/philemon/philemon.htm

Ephesians - 62-63.
http://www.usccb.org/nab/bible/ephesians/intro.htm
http://www.usccb.org/nab/bible/ephesians/ephesians1.htm
http://www.usccb.org/nab/bible/ephesians/ephesians2.htm
http://www.usccb.org/nab/bible/ephesians/ephesians3.htm
http://www.usccb.org/nab/bible/ephesians/ephesians4.htm
http://www.usccb.org/nab/bible/ephesians/ephesians5.htm
http://www.usccb.org/nab/bible/ephesians/ephesians6.htm

Luke - 63.http://www.usccb.org/nab/bible/luke/intro.htm

Acts - 64.http://www.usccb.org/nab/bible/acts/intro.htm

First Timothy - 65.
http://www.usccb.org/nab/bible/1timothy/intro.htm
http://www.usccb.org/nab/bible/1timothy/1timothy1.htm
http://www.usccb.org/nab/bible/1timothy/1timothy2.htm
http://www.usccb.org/nab/bible/1timothy/1timothy3.htm
http://www.usccb.org/nab/bible/1timothy/1timothy4.htm
http://www.usccb.org/nab/bible/1timothy/1timothy5.htm
http://www.usccb.org/nab/bible/1timothy/1timothy6.htm

Titus - 65.
http://www.usccb.org/nab/bible/titus/intro.htm
http://www.usccb.org/nab/bible/titus/titus1.htm
http://www.usccb.org/nab/bible/titus/titus2.htm
http://www.usccb.org/nab/bible/titus/titus3.htm

Second Timothy - 66.
http://www.usccb.org/nab/bible/2timothy/intro.htm
http://www.usccb.org/nab/bible/2timothy/2timothy1.htm
http://www.usccb.org/nab/bible/2timothy/2timothy2.htm
http://www.usccb.org/nab/bible/titus/titus3.htm

Mark - 66.
http://www.usccb.org/nab/bible/mark/intro.htm

Matthew - 67.
http://www.usccb.org/nab/bible/matthew/intro.htm

Hebrews - 67.
http://www.usccb.org/nab/bible/hebrews/intro.htm
http://www.usccb.org/nab/bible/hebrews/hebrews1.htm
http://www.usccb.org/nab/bible/hebrews/hebrews2.htm
http://www.usccb.org/nab/bible/hebrews/hebrews3.htm
http://www.usccb.org/nab/bible/hebrews/hebrews4.htm
http://www.usccb.org/nab/bible/hebrews/hebrews5.htm
http://www.usccb.org/nab/bible/hebrews/hebrews6.htm
http://www.usccb.org/nab/bible/hebrews/hebrews7.htm
http://www.usccb.org/nab/bible/hebrews/hebrews8.htm
http://www.usccb.org/nab/bible/hebrews/hebrews9.htm
http://www.usccb.org/nab/bible/hebrews/hebrews10.htm
http://www.usccb.org/nab/bible/hebrews/hebrews11.htm
http://www.usccb.org/nab/bible/hebrews/hebrews12.htm
http://www.usccb.org/nab/bible/hebrews/hebrews13.htm

First Peter - 67-68.
http://www.usccb.org/nab/bible/1peter/intro.htm
http://www.usccb.org/nab/bible/1peter/1peter1.htm
http://www.usccb.org/nab/bible/1peter/1peter2.htm
http://www.usccb.org/nab/bible/1peter/1peter3.htm
http://www.usccb.org/nab/bible/1peter/1peter4.htm
http://www.usccb.org/nab/bible/1peter/1peter5.htm

Second Peter - 68.
http://www.usccb.org/nab/bible/2peter/intro.htm
http://www.usccb.org/nab/bible/2peter/2peter1.htm
http://www.usccb.org/nab/bible/2peter/2peter2.htm
http://www.usccb.org/nab/bible/2peter/2peter3.htm

Jude - 68. http://www.usccb.org/nab/bible/jude/jude.htm

Apocalypse - 68.
http://www.usccb.org/nab/bible/revelation/intro.htm
http://www.usccb.org/nab/bible/revelation/revelation1.htm
http://www.usccb.org/nab/bible/revelation/revelation2.htm
http://www.usccb.org/nab/bible/revelation/revelation3.htm
http://www.usccb.org/nab/bible/revelation/revelation4.htm
http://www.usccb.org/nab/bible/revelation/revelation5.htm
http://www.usccb.org/nab/bible/revelation/revelation6.htm
http://www.usccb.org/nab/bible/revelation/revelation7.htm
http://www.usccb.org/nab/bible/revelation/revelation8.htm
http://www.usccb.org/nab/bible/revelation/revelation9.htm
http://www.usccb.org/nab/bible/revelation/revelation10.htm
http://www.usccb.org/nab/bible/revelation/revelation11.htm
http://www.usccb.org/nab/bible/revelation/revelation12.htm
http://www.usccb.org/nab/bible/revelation/revelation13.htm
http://www.usccb.org/nab/bible/revelation/revelation14.htm
http://www.usccb.org/nab/bible/revelation/revelation15.htm
http://www.usccb.org/nab/bible/revelation/revelation16.htm
http://www.usccb.org/nab/bible/revelation/revelation17.htm
http://www.usccb.org/nab/bible/revelation/revelation18.htm
http://www.usccb.org/nab/bible/revelation/revelation19.htm
http://www.usccb.org/nab/bible/revelation/revelation20.htm
http://www.usccb.org/nab/bible/revelation/revelation21.htm
http://www.usccb.org/nab/bible/revelation/revelation22.htm

John - c. 85.http://www.usccb.org/nab/bible/john/intro.htm

Epistles of John - 90-95.
http://www.usccb.org/nab/bible/1john/intro.htm
http://www.usccb.org/nab/bible/1john/1john1.htm
http://www.usccb.org/nab/bible/1john/1john2.htm
http://www.usccb.org/nab/bible/1john/1john3.htm
http://www.usccb.org/nab/bible/1john/1john4.htm
http://www.usccb.org/nab/bible/1john/1john5.htm

http://www.usccb.org/nab/bible/2john/2john.htm

http://www.usccb.org/nab/bible/3john/3john.htm

--
Posted By John Darrouzet to STREET WITHOUT WALLS at 1/04/2009 09:39:00 PM

Sunday, September 21, 2008

Sub Prime Crisis: Is it a policy failure




 (The arrow show the movement of Funds.)

In a tradition banking setup ( like one that exist in India) Bank normally finance the loan to the borrowers from the deposits it receive. (If Mr A deposits Rs 1000 in a Bank banks keep say Rs 100 (say 10%  as a reserve to meet the obligation) and lend out Rs 900 to Mr B. Mr B then pay to Mr C who in turns deposits it in a bank (same or other). The bank keeps 90 and lends out Rs 810 to Mr D. and this process goes on)

In some of the developed economy now the loan which a bank gives is formed into a bond (Mortgage bond) and sold in the bond market. (For banks the credit extended is an investment). This act as a supply extra fund for the banks. There is no problem with this business model. The problem started with the implementation. Many private players started extending loan to client who was rejected by the government banks based on the report of the home appraiser. These investments were clubbed with those credits given to people with better credit worthiness. As a result the bond as a whole got good credit rating and many investors bought them (including many Investment bankers like Lehman brothers). This also fueled the boom in the real estate market. The price of property showed abnormal growth.

Till the Real Estate industry was in boom this model was working great. If the home purchaser defaulted the bank could sell their property as it was mortgaged with the bank. When the real estate industry busted (i.e the market saw a correction in the price of the property.), the model showed its inefficiency.

Most of the banks who provided these loans did not do a proper check of the customers. As a result they did not even had proper document relating to property. They could not sell the mortgaged property at the price which would meet the demand of the bond holders. So the repayment to bond holders became difficult for these banking institutions. There were no buyers for these bond in the bond market as a result of this the bond became worthless. Many of the investor who had bought these bonds because of the high return had to write off these loans from their book.

The Price of property has come down by around 8 to 9%. As per some reports the total loss to major banks like City bank J.P. Morgan Chase, Bank of America and others were to the tune of  $ 100 bn. A total of $ 500 Bn has already been declared. The estimated loss is round $ 1 trillion. US congress is working on $700 bn financial bailout plan. It is to be seen how many institution can this $ 700 bn can save from crisis. 

Reasons.....?

Lehman's slow collapse began as the mortgage market crisis, its stock began a steady fall from a peak.The fears were based on the fact that the firm was a major player in the market for subprime and prime mortgages, and that as the smallest of the major Wall Street firms, it faced a larger risk that large losses could be fatal.
Most affected are the investment bank and Lehman Brothers.

Sumit Bhandari
timus2002@gmail.com
sumitb_ june07@mba.isquareit.ac.in

???Dear Lehman, Who are you???


Due to busy schedule I did not read any newspaper or see any other media communication. But through the word of mouth I've heard about the "Lehman Brothers".

Why there's so much hype about it? What exactly it is?

Guys, Let me also know about the rising temptation…

Arun Shukla

MBA - Marketing

International Institute of Information Technology

Pune

India

Indian companies dont get bankrupt like this.... WHY?
Our fundamentals of doing business are very strong.................................

Ashwani kumar
ashwanistorm@gmail.c
om

CRASHED

Lehman crashed........... market is volatile , investments are hard to done and IT industry got kicked badly....................


Aashish Puri
aashishiec1@gmail.com

still hiring

Collapse of the Lehman Brothers in the world's biggest ever bankruptcy story may have sent thousands of its employees flocking the job market, but the 158-year-old American investment bank giant still seems to be in hiring mood.


Lehman Brothers seems to be continuing with its hiring activities, as it has posted at least four new job vacancies for the US after its bankruptcy filing. These vacancies are for positions like Investor Accounting Specialist, Foreclosure Specialist and Default Supervisor, and they seem to have been posted on the bank's website a day after the bankruptcy filing or later.

In addition, Lehman Brothers has over a dozen recruitment events lined up across the world through September, October and November.


Rahul
poison_rocky@rediffmail.com

Bankruptcy.........?


Investors in recent weeks had grown increasingly jittery about Lehman's $46 billion of mortgages and asset-backed securities, as well as its credit rating and its ability to raise capital. Bankruptcy represents the end of a 158-year old company that survived world wars and the collapse of Long-Term Capital Management but could not survive the global credit crunch. "Its truly sad that the once admired firms dont exist any more. It shows that reputation once built has to be continuously maintained. It also shows weak US control functions, otherwise how could the firms which hire only top class MBAs take such significant risky exposures? I feel sorry for the employeesI feel sorry for the employees and investors whose careers and lives have been affected. The US has not been able to manage its affairs and is dragging the world down with it".

Prabha baid
prabha.baid@gmail.com
prabhab_ june07@mba.isquareit.ac.in
We all knew going into the weekend that Monday would be a day to test the strength of the financial system. We just didn't know how tough that test was going to be. It's Monday in most of the world now, and markets are cracking up just a few hours behind sunrise. Australia's financial stocks are leading its market downward, and it's Reserve Bank is injecting $1.3 billion to ease concerns.

Mansi
IIIT-pune
gaur.mansi@gmail.com
mansig_june07@mba.isquareit.ac.in

Situation Reaction

The Federal Reserve and Treasury are actively helping Lehman Brothers put itself up for sale, and officials are hoping a deal will be in place this weekend before Asian markets open on Monday, according to sources familiar with the matter.

The government is looking for an agreement that would not involve public money. One scenario that is emerging includes multiple suitors acquiring different pieces of the venerable investment bank, which has suffered staggering losses from its business in real estate and mortgages.

The situation was still fluid tonight, and there was no guarantee what form an agreement would take, or even that it would be in place by Monday, the sources said on condition of anonymity because they had not been authorized to speak.

Prahlad Mishra
Cognizant
Stains, UK
bliss.mishra@gmail.com

I dont think so...

No, the government should not bail out Lehman Brothers. It is most definitely not the governmen't place to have any hand in the dealings of business. That will only lead to socialism & a controlling government.

Amit Srivastava
Satyam Computers
Hydrabad
amitsrivastava0303@gmail.com

Imapct of Bankruptcy

Markets worldwide are reeling from the aftershocks of lehamn bros going into bankruptcy.Lehman bros which has survived over 150 years finally declared themselves bankruptcy putting ten of thousands of jobs at risk all over the world.

Nitesh Behani
niteshbehani@gmail.com
niteshb_ june07@mba.isquareit.ac.in

Bail Out Lehman

If the US Government bails out Lehman, then it indicates a responsibility towards the economy. Since the US Government represents the citizens, this money represents tax dollars from said citizens. That is not a productive, nor efficient model of business. That's socialism. Government isn't a business. If the government bailed out everyone as a 'short-term' solution, businesses would have no impetus to become better and more efficient at operating. If Uncle Sam had your back, would you review your finances and crack-down on needless expenses? Heavens no! Setting a precedent for bailing out companies would be disastrous in the long-term.

Mridula Kapoor
Student (MBA - Finance)
Siva Sivani
Hydrabad
mridu.kapoor786@gmail.com
LEHMAN BROTHERS used to give loans, they themselves need loans

" What an Irony"

"Cling On"

The current situation should be largely attributed to Dick Fuld's "cling on" approach. He turned down many acquisition attempt on the perceived lack of proper value being offerred. I don't know whether accepting a lesser value was better or the bankruptcy filing was better.

He should have seen this coming long back & should have exited the mortgage business long back. Instead they went on to acquire one more mortagage company. Absolute lack of foresight!!

Mukund Madhav Tripathi
Student (MBA - International Business)
FMS BHU
Varanasi
madhav.161982@gmail.com

Billion dollars dissapeared

As the rest of the financial community was scrambling to get its money out, a government-owned German lender gave Lehman Brothers 300 million euros on the same day it filed for bankruptcy

Virendra
IIIT-Pune
virencp@gmail.com
virendrap_june07@mba.isquareit.ac.in

Reasons for the Bankruptcy

well............
they had given loans to customers..........
which could not be recovered..............
so they had to write off debts worth billiions of dollars............
they also did'nt have any liquid cash to run their business..............
so had to file for bankruptcy...............
with the US govt.............

Sachin Dabolker
searchin82@gmail.com
sachind_june07@mba.isquareit.ac.in

Overconfidence Kills

It didn't came to me as surprise that US financial market was collapsed last evening. It is rather obvious than shock when Lehman Brothers hit the headlines for reasons they never thought about. The unwarranted debt they invested in sub-prime market had no other result than their gradual -to-sudden credit loss. They call it "Great Depression". I would say over confidence most often results in failure to perform.

Shabbeer N. Zafar
MBA
International Institute of Information Technology, Pune
Email- shabbeerz_june07@mba.isquareit.ac.in

Paying the price

Lehman Brothers Holdings Inc. (Pink Sheets: LEHMQ) (pronounced IPA) is a global financial-services firm. The firm does business in investment banking, equity and fixed-income sales, research and trading, investment management, private equity, and private banking. It is a primary dealer in the U.S. Treasury securities market. Its
primary subsidiaries include Lehman Brothers Inc.Neuberger Berman Inc., Aurora Loan Services, Inc., SIB Mortgage Corporation, Lehman Brothers Bank, FSB, Eagle Energy Partners, and the Crossroads Group. The firm's worldwide headquarters are in New York City, with regional headquarters in London, England, and Tokyo, Japan, as well as offices located throughout the world.

I think that they made a lot of bad choices and now they are paying for it!

Rahul Partoti
rahul.partoti@gmail.com
rahulp_june07@mba.isquareit.ac.in
IIIT Pune

lehman in layman

According to several Lehman Brothers employees, a rumor is going around that Barclays is back and may put in a bid for broker-dealer services and Neuberger Berman. We obviously can't confirm and it may be wishful thinking from those at Lehman. The real question is: does Barclays have the pair to fuck with everyone like that?

Siddiq
IIIT-Pune
siddiq_ahmed05@yahoo.co.in
siddiqa_june07@mba.isquareit.ac.in

Effects on Indian IT Scenario...


LB is 158 yrs old investing company & as it goes down, it makes big impact on financial market.lots of financial banking projects are getting closed, u can find large number of cut off in many big companies. just for cost cutting, all major IT cos of India are reducing their on bench employees. in UK 3000 people lost their jobs,in India its 2800+ and still counting. It will take 1 yr; now other major bank like bank of Canada; Japan r planing to purchase assets of LB, that will improve the market condition. Indian IT market is still good enough
but it is just reducing on bench resources for ex, TCS previously used to keep 15% resources on bench, now its reduced to 5%

Sandeep Telang,
Senior System Analyst,
SONATA SOFTWARE LTD, BANGALORE.
sandeep.t@sonata-software.com
I don't understand why banks keep crediting despite huge losses. May be they care about people's money.

Deepak Agarwal
MBA Student, IsquareIT, pune
deepak.elect@gmail.com
Financial market is governed by sentiments... Lehman got something worst out of it.

Sumit Kumar
MBA student, NDIM, New Delhi
sumitcool@yahoo.com
Its a result of mere an unrealistic speculation.

Ashish Anthony
MBA student, Pune University
ashish.anthony@gmail.com
Downfall of Lehman Brothers is an indication of collapsing US capitalist economy system.

Anjana
MBA student, Pune University
anjn25@yahoo.com
Not a big thing. Market will soon reinstall its momentum.

Shahid Nadeem
Business Analyst
HCL Comnet UK
shaheed111@hotmail.com

Saturday, September 20, 2008

Lehman Brothers' financial free fall

Lehman Brothers' financial free fall resulted from its position in the mortgage backed securities market. As an investment bank, Lehman Brothers followed the lead of Salomon Brothers, that invented the non-Fannie/Ginnie Mae mortgage-backed securities business.

M. Arif
Sr. Software Engineer
IBM India, New Delhi
arif_zee@msn.com

Stand alone more harmful than stand jointly

Last week one of the biggest investment bank Lehman Brothers got bankrupt as they couldn’t able to withstand the market trend. They couldn’t able to collect or gather their monetary assets due to which the shares of the company fall drastically to that extends that company has to withdraw its ownership from market .

Impact is so large that the Indian IT companies are again in back foot .Also results in slowdown of the share market which hampers the investors.

Adarsha Bose
International Institute of Information Technology

Black Monday - When millions hope died

One of the world oldest, prestigious financial institutions is down to dust, HOW?

The institution which used to inspire many professionals is now searching for inspiration. The assets worth 150bn $ got disappeared into thin air. Where all that money gone, this question worth billions dollars, so the treasure hunt begins, be a part of it.


Kapil Rajput
International Institute of Information Technology

Why did the Lehman Brothers Fell? Answers for you in Layman Language….

To understand the present Financial crisis in US that led to the fall of Lehman brothers one has to understand what’s sub-prime lending. When banks give loan to person from elite strata of society, this loan borrowers are known as known as primes. Lending to these primes is an risk less venture due to a sound assurance of loan money retrieval. Whereas people who have a slightly low financial credibility to return loans are known as ‘sub-primes’. Mortgages given to sub prime are risky as there’s always a chance that sub-prime people will default from repaying.

So the question is why US would have lent money to sub-primes? The answer is, during the period 2002 to 2007, the housing and property business was booming in US and property rates during these five years went double. Thus every major investment bank gave housing loans to sub-primes because they believed that the booming property rates will enable them to pay-back easily. Almost every major investment bank came up with a product for housing loans (even capped into mutual funds) to sub-primes. Investment in house mortgage was gigantic.

But after 2007, due to saturation of property market and increase in competition, property rates fell flat down. Entire scenario was heading towards a cold death. Inflation was rising, dollar was weakening and economy slowed down drastically. The sub-primes (largely consisting of poor people and young students) were unable to repay loans (which came with heavy interest rates due to the risk involved). Thus investment banks went straight to gallows. The combination of sub-prime lending, declining economy and inflation led to the downfall of Lehman brothers who were actually worst affected by this ongoing crisis.

Implications for India:

As they say, “when US sneezes, India and China catch cold”. Lehman Brothers demise will mostly affect the BFIS sector of India (the Banking, Finance, Insurance & Service sector). IT Companies like Infosys and TCS had Lehman Brothers and other Investment giants as their top clients. Surely lots of employees in BFIS sector and IT sector will be given Pink Slips. Students of IIM’s have something to worry about as Lehman Brothers used to come at Day zero of campus placements. Markets in India were already on a downfall & Lehman brothers case has made the matters worst. Things have changed even for Barclays and AIG as even their share prices have gone down. Budding MBA graduates should be ready for a slightly less pay-package ( if at all ) than previous year. Especially the heart goes out to the Indian IT sector which was the backend for all this US investment giants.

Tarun A. Raipure
Post Graduate Student, IsquareIT Pune

Guess who needs loans?

This is a big problem for anyone who needs a loan to finance an investment or business activity. Guess who needs loans? Clean energy developers. Looking broadly, I see some broad economic trends affecting the market over the next few years.

Anshul Saxena
Business Analyst
Spower Technologies, Bangalore
anshul@spowertechnologies.com
Financial institutions borrow money all the time to fund their investments. When the real estate bubble burst, a lot of those investments lost value rapidly, leaving banks such as Bear Stearns and Lehman Brothers unable to borrow new money and unable to repay their existing debt. This situation lead to a domino effect — "contagious failures" — in which borrowers are unable to repay lenders, who are then themselves sucked into the financial crisis.

KK Kamal
AAO, LIC of India Mumbai
kamalesh.kamal@gmail.com
A trickier question is what affect the broader issues in the financial markets have for the development. And, well, it's hard to say, as all sorts of countervailing forces are at work.

Tarique Sohail
Business Development
ITH, New Delhi
The impact of the Lehman Brothers bankruptcy began trickling into corporate financial filings late yesterday and today. So far, the pain didn't seem severe, but it wasn't clear how strong a flow might eventually result.

Amaresh Kumar
Bihar Admin. Service
Supaul

Why did the financing dry up?

Why did the financing dry up? For months, short-sellers were convinced that Lehman's real-estate losses were bigger than it had acknowledged. As more bad news about the real estate market emerged, including the losses at Freddie Mac and Fannie Mae, this view spread.

Gurpreet Singh
Student
IsquareIT, Pune
guruonly1@gmail.com