Existential Exits: The Curious Case of…

The curious case of Benjamin Button! This could very well be a concocted piece of headline that I would have thought of giving to my opinion on the instances happened a quarter back. Except the reverse chronological orders unbound by the nature's own evolution, in a tiny fraction, that I found similarities quasi-syndromic.

Raghuram Rajan (Rexit), Nikesh Arora (Nexit), Britan Referendum (Brexit) - the curious case of liberal economical acuities. The economic value occasionally gets too difficult to gauge because sometimes it either resonates with the value creator or with the value receiver. Neither of which can be inevitably dismissed with the large scale proposition of con-joined existences. The economies of scale which the affluent aristocratic identities affect a breadth of touchpoints may only oscillate from 'To' to 'Fro' and may thus disturb the established belief - exits are non-existential.

Rexit : Mojo will re-surface again.
The similarities developing in the aftermath of the trio-logical consequences may indicate that the approval for capitalism globally may well be a passing interlude, and that the blowback against it may be just around the corner. But the passing time promises more galvanizations than desertions and the exits 'in all course' must be credited with larger than life humility and abundancy.

In 2015, Indian markets saw worrying signs of economic slowdown, thus Rajan and his team swiftly decided to cut down interest rates. India's Sensex stock increased by 60 per cent and the shares in State Bank of India gained a whopping 130 per cent after Rajan took the office. During the monetary policy meeting on December 1, Rajan did not change its policy rate, indicating that India's economy was "strong" enough to weather the storm of Fed's move.

In a way, the independent economic identities challenge to a well-functioning market economy, it comes from two main aspects: the incumbent and the excluded. The viewpoints largely supporting pro-competition rather than pro-business policies-that is, ones that do not necessarily favor incumbents, but allow the most efficient firms to succeed-and advocate social safety nets for the excluded, so that they do not feel battered by the ruthlessness of the capitalist system. And that is why the independent contemplations tend to gain more weightage with the long term vision of valued sustainability.

Nexit : Startups buckling through venture capitalism?
Google exec Nikesh Arora made a surprise joining to Japanese telco giant Softbank back in October 2014. He was effectively being groomed to take the top spot at Softbank when billionaire founder and CEO Masayoshi Son stands down. Most of SoftBank Group's investments in Asia's third-largest economy occurred after India-born Nikesh Arora joined the Japanese company. SoftBank, led by Arora, pushed India's startup growth into high gear closing three back-to back investments worth nearly $1 billion (Rs 6,700 crore) during October-November 2014. With his exit, people wonder if SoftBank will keep investing in India and what will happen to its current portfolio.

However to allay all the cloudy surmises, which says - market structure is determined by the entry/exit decisions of individual decision holders and these decisions are driven by expectations of future profits which, in turn, depend on the nature of competition within the market - one must not forget that the business continuity is largely driven by focusing on exit values i.e. "output" measures of venture capital performance rather than "input" values i.e. total investment. As such, exit values allow us to compare the performance of venture capital markets across different jurisdictions.

Read here to understand how venture capitalist firms long term business model value remains insulated of short term hiccups.

Brexit : Will meet in another world

The UK's shocking decision to leave the European Union has thrown financial markets into chaos. The unexpected turn of events walloped the British pound, which plummeted by more than 10% against the dollar-by far its biggest intraday decline in history. Though there would be a two-year window in which the country will maintain unfettered market access as it negotiated an exit. The report notes that UK incomes could fall between 1.1 percent and 3.1 per cent as a result. But, it is slightly more plausible that the net impact would be modestly positive also. There are potential net benefits in the areas of a more tailored immigration policy, the freedom to make trade deals, moderately lower levels of regulation and savings to the public purse.

One of the many illusions on which Brexit is based, therefore, is that capitalism is a system that works in the spaces outside of regulation, and that regulation is consequently anti-capitalist. A more realistic view is that capitalism is regulation (of working life, product standardization, consumer choice, of markets, credit etc).

The idea that, say, pharmaceuticals, financial services or business services (all areas of some lingering success for the UK) thrive in the absence of rules is to ignore the copious ways in which it is only rules which make such industries possible in the first place.

United Kingdom (UK), including London, could become the favorite destination for Indian property buyers as Britain has voted to leave the European Union after a referendum. Experts see it as a buying opportunity for the Indian realty investors as Brexit hints at an interest rate cut by the Bank of England and devaluation of the pound.