TheBlackDay

Today Indian Government injected an un-precedented sum of Rs 2,00,000 crore in to public sector banks.

Feel free to challenge my data and i will provide references.
Share it, even to those with different views, let them challenge me and i will try my best to answer.

BLACK DAY, NOT dooms day.

In year 2016 , Rs 22,000 crore was injected in to public sector banks.
In year 2014,  Rs 11,000 crore was injected in to public sector banks.

To help you visualize the bail out money , this money could help fund,

1. 60 Lakh jobs, if it was given to drivers to get cars and drive for Uber or Ola or Taxi...
2. 80 Lakh jobs, if it was given to set up small bakery or Kirana shops.
3. 1 crore students, to finish their higher secondary education (10 th ,+1 and +2).
4. 2 crore homes, can run entirely on solar and wind power alone, reducing our dependence on burning coal and natural gas.
5. Around 2,000 flood dams can be build across India, increasing food stability, providing immediate employment when building and long term agricultural employment.
6. Around 20,000 research projects can be funded to various Entrepreneurs, public/private universities, Government institutions.
7. Launch 200 satellites in to orbit, for geological survey on Natural disasters.

What's next,

1. In November RBI will lower interest rates.
2. Retirees and savers will get lower returns on their savings rate.
3. Home loan rates will NOT go down.
4. Corporates with NPA's and public sector banks that lends money to them will walk scot-free.
5. The same PSBs will do the very same thing...Lending to the already delinquent corporates.

What to do,

It is not possible to avoid the impact altogether. However , you can do things to reduce your impact and exposure.

With the assumption that you are not an executive in a large corporation, you can do one or all of the below,

1. Address your long term needs and rapidly pay off your debt.
1. Say you have 3 loans, Auto, home and education. Pick the one with highest interest rate and pay it off as early as you can.
2. Fight the loan with vengeance. You will save on interest, which can again be used to pay off the next loan.
2. Reduce all expenses you can avoid.Resist the need to spend (or) out-spend your friends or relatives.
3. Understand the investments you make.
1. Even bad (NOT BLIND) investments made with some home work, perform better than a savings account or gold...
2. Stocks and Mutual funds.Ask why to buy ? Why not to buy?. Join as group, research, then invest. Remember Jan-2019, will be an year of perfect growth, time it to sell your stocks before that...!!!
3. Land increases in value (to an extent) but house depreciates in value over time.
4. Resources increase in value, processed goods decrease in value. Say you purchase Cement, sand and steel and protect in a godown for 10 years it increases in value. Build a house with it, the value depreciates.
4. Shop small , local and only with the ones with trust and working relation ship.
1. This keeps money in your community, keeps un-employment low in your community, which in turn increases safety and robustness of neighborhood you live in.
2. Money keeps circulating, and does not accumulate in a few hands.
5. Buy quality long lasting products.
1. This means less time spent on shopping, good for resource usage and less likely to have un-expected expenses.
2. This also means you will care for your products and keep them longer.
6. Exercise, invest in health, they save your costs in future.
1. If you sacrifice health to make money and then spend to gain health, health does not come back.
2. Any money made by sacrificing health, does NOT stick.
7. Join as Community.
1. Keep in touch with friends and relatives.
2. Shop for them when you shop saving each other time and money(travel).
3. Stay in your friend or relatives house when going out of home town.Buy them gift (or) a fruit basket, so that you do not feel obligated. This will come back to you, one way or other.
8. Anything else ?