Operation Twist

It was the Friday night on my way back home from a party, the drive on the highway reminded me that our life too was just like a black highway at night.

Quite often than not, I wondered to whose tune we may be dancing to. Now, move the time machine 50 years' back. The one thing that made the entire world go crazy is the "Twist" - a dance inspired by the rock and roll music. It was a madness amongst youth; drew fierce criticism for its proactive style and the seed to many club dance forms of today.

Now, come to the year 2011. It was the same Twist that the entire world danced to this week, but for a music composed by Uncle Ben. This Operation Twist is far more fierce and crazy than the original rock and roll in the early 1960s and shook global markets, wiped out billions of dollars.

Operation Twist is the mechanism where the Fed can sell the medium term bonds up to 3 years and purchase the long term bonds, say 10 and 30 years, thereby trying to keep long term rates lower in a hope to boost consumer credit and make Americans spend which could revive the Economy. This may be the best tool available without increasing the government debt, especially after the S&P downgrade.

Though it seems like Uncle Ben has arrived probably with best possible solution, it was rather too late as the damage was already done to the financial system. Take this. The 10 year rates are already below the inflation. The short term rates are close to zero. Unemployment rates are nearing double digit and so called QE1 and QE2 have only treated the symptoms rather than the disease, further aggravating the problem in hand. We haven't seen any meaningful demand uptick. And in all probability, the yield curve would flatten out rather than inverting and the actual outcome from this Operation Twist may not be met.

Fed has already taken the wind by commenting on the Economy, taking global markets for a roller coaster ride. Unless the Americans spend, the dust won't be settled anytime soon. It's a classic case of a chicken and Egg story. The search continues. Until then, our future is a journey on a black highway at nights, waiting for a new dawn.

Gadget Guru

I recently took a break away from the dazzling world of derivatives.  Much away from the glare of the world of finance and the busy crowded Mumbai streets; and moved closer to the heavenly nature.  The air was fresh and water was as pure as one could think of. The mind was fresh and thoughts were free flowing. Yet, I was not completely isolated from my professional world. Thanks (?) to BB. Our life has changed, may be for good. I know life was easy when Apple and Blackberries were mere fruits. Who would have ever imagined that our life will change forever with the advent of Apple and Blackberry? I often wondered what could be the best use of Apple ever since the Adam. Who would have used Apple as one would never thought of. Steve Jobs did.

I am a BB user and a Nokia fan till a few years back, but what Steve did with Apple was incredible. He is a true visionary who changed the world; changed our life; and changed the way we communicate and entertain ourselves. Without doubt he is the only soul on the earth who utilised globalisation to the fullest, turning Apple into the most valuable company on this planet. He might have been a chief executive, but he wore the shoes of the customer for most part of his career. He knew what the customer wants; rejected may be half of dozen gadgets or more that are class apart from any competitive products that would have been available.

I am not a tech expert, but as an Apple enthusiast, keeping my markets and its mayhem aside for a while, I can say words would fall short before the experience of the i-Phone or the i-Pods or the i-Pads or the Mac for that matter. The way Apple integrated its operating system with the hardware and the apps are remarkable. Blue Ocean Strategy, I would say so. Apple made competition irrelevant. The Nokia’s and Motorola’s of the world are still struggling and failing to understand what really works. Quite smartly, Steve heightened the expectations of the customers across the globe and redefined smartness with his out of box thinking. Since 1997, Apple has sold over 200 million iPods, a billion iTunes songs, 26 million iPhones, and over 60 million computers.

Debate and discussions are on ever since Steve Jobs stepped out on how successful Apple would be without him. I was told he visualized and planned i-Pad much before the i-Phone and people often stunned by his clarity of thoughts. Only a true visionary can plan that far ahead and when he stepped out, he obviously would have thought how Apple should be in the next, if not 20 years, at least for a decade.

Steve Jobs turned Apple into Gold. Edison might have had over 1800 patents in his name, but Steve Jobs proved that he can be as innovative with an Apple. I am learning my lessons; ever one has something to learn from Steve Jobs, a true visionary leader. The world was changed and man who was the catalyst of this change would be remembered forever.

Adam would still gift an Apple to Eve, but this time it will be a different one; and she, in all probability would love it, better than the first.