We see a strange phenomenon that ordinary people are protesting against excessive indulgence in the stock exchanges. The gamblers corrupted investment market of the stock exchange into gambling dens. I call it a strange incidence primarily because there is no leader to this movement. It appears to be a movement initiated by the people of the people and for the people, a truly democratic happening. Some journalists say that for that movement people got inspiration from movements elsewhere, I do not think that is correct since all those movements mentioned are bloody and terribly violent while the occupy stock exchange is very peaceful. If at all one has to compare that with any other it can be compared only with that of Anna, in India. However, I see that nobody wants to do that comparison, why?

Nobody knows how this occurred, but I think that an explanation is possible if some equally bizarre things those happened about one of my blogs looked into. Along with this blog on the Siliconindia server, I had another blog “blog.co.in” team of Goggles manages. That my blog with title, “Ideas and tips on any subject”, carried several articles on economic considerations and in them, I often wrote about how the Wall Street Greeks corrupted Wall Street market. I received huge response to that and at times, it was very difficult to manage the flow of comments coming on my postings. The blog worked well until September this last year. In month September, I received a call some time at the beginning of that month and the caller told me that I had better stop maligning the name of American Multi National Corporations (MNCs) and the Wall Street operators; otherwise, they shall stop my blog per force. I never thought that it has any importance; we all know, journalists do get such calls and that is the part of their career. However, one day I came to know that this blog and along with that server of the team Blog.co.in was hacked. My all articles on this subject along with other topics lost permanently. Luckily, all 126 articles on various subjects, so far published, are intact with me and if anybody wants them, I can reproduce them. Bad part is that I cannot continue my interaction with those many thousands readers any more.  

I have published similar articles on this blog also; but here I did not get that kind of response and so, decided to limit my writings on this blog to only matters concerning Indian conditions and Indian problems. However, I must insist to say that the conditions at Wall Street are not very different from those at our Dalal Street. I wish to publish my research findings soon here on this blog for the appreciation of my esteemed readers and in that, I shall explain how excessive indulgence corrupts the money market so much so that it becomes a menace to the economy of the country and the world.

A stock market is primarily an investment market that deals in the shares of companies; the type of fluctuations expected under normal condition is not on everyday basis. However, we see that certain operators artificially create hype in the market causing excessive buying and selling. This is not a normal behavior of an investment market. Any excessive fluctuation causes fast movements in the market, which triggers gambling effect. We may recollect the happenings during Harshad Mehta days. This is causing corrupting of the otherwise investment market to a gamblers’ platform.

“Occupy Wall Street” movement by the people aimed at stopping this excessive fluctuation effects created artificially by the big operators. This excessive fluctuation attracts money from other quarters into this market for quick realization causing what I term as “Whirlpool effect”. This if continues repeatedly can cause economic hazards such as depression and inflation. In Dalal Street, the controlling body, that control, exercises the control compulsorily, avoiding this excessive fluctuation. This does not happen at Wall Street; as a result, we see inflations and depressions more often experienced by those markets. Those  frequent inflations and depressions destabilize national economics. America is presently facing that.

What worries me is the sad experience that no responsible economist bothers to condemn this wrong practice. I believe this anomaly continues to pester the economic world for simple reason that such artificial fluctuations can help some callous people in making quick money in a very short time. The temptation of this one possibility, as it were, compels them to keep studied silence on it; allowing the gambling to prosper at the expense of investment. Typical explanation (better say excuse) produced by the leaders of these operators is very deceitful. Often they mix up between investment market (development) and gambling market; conveniently avoiding to understand, the conspicuous difference in the two. They give examples of the investment strategy to justify gambling. Nobody wants to ask about the artificial fluctuation created daily on flimsy grounds to help gambling. All this, as I have said earlier, to support that freak chance of making fast bug, very callous indeed. One thing is certain that, in the process, operators and brokers profit, players may or may not.     

We must thank our BSE body who exercise that control. However, in the recent past  we saw that, as foreign operators were allowed to play in our market during nineties, they showed their reluctance for such rigid control and for some time they were relaxed but again reintroduced at the request of our conscientious members of BSE. Nevertheless, I observe that considerable gambling continues on our investment markets. That means there is a chance that another Harshad Mehta shall crop up and create problem. I heard that worst type of gamblers, Goldman Sachs and Morgan Stanley, are coming to operate in our market; if this actually happens, we shall have to take to Occupy Dalal Street campaign to evict them. Other field of gambling is the Forex market. With that instrument, US government, through their allies in London keeps the falling Dollar (artificially) strong. I shall write on that some other time.           

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Ashok Kothare’s Blog

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