Thursday, February 02, 2006
Gateway to Information or Tool of Oppression?
Google has been in the midst of a debate about its action of allowing the Chinese communist government to censor Google's search results in China.
On one side of the argument it is becoming a tool of oppression for the Chinese government as Chinese citizens are not being allowed access to "sensitive" information. A company, whose motto is "Don't be evil", should not become a partner of some government willing to do evil by only allowing filtered information to get through to the masses.
On the other hand, why should Google care about how it manages to penetrate a controlled market? It is in the business of making money and it can choose to make reasonable decisions to improve its bottomline. Politics should be left for the governments.
On principle, it should not have gone in, but lets be practical here. How can Google be labelled as becoming a tool of oppression while others are merrily doing business with the oppressors? If Google decides not to go in, can Google be assured that no other American company will do business with the Chinese? Why should some companies be allowed to do business there while others can't? Who will make sure others don't go to China? Well, no one can, and hence Google's choice is valid.
Besides, there is one more very strong reason which is often overlooked. Its digital filtering. No computer system is that solid that it won't have bugs or allow tweaks and easter bunnies to sneak in. Its software after all. Would you rather that Chinese people do not have access to any information at all or that they have access to some information? I would choose to let them have some access rather than none. Perhaps minds can be transformed by ideas expressed in ways which are not obvious to censorship boards. At least we have some form of a channel of communication.
Here are some of the differences between google.com and google.cn
Friday, January 27, 2006
Who has the edge?
Jeremy Siegel is a very accomplished professor of Finance at Wharton Business School, UPenn. He is writing a two part article on India Vs. China.
India lags in the hard infrastructure of roads, airports, and buildings, but leads in the "soft" infrastructure of democratic institutions, free press, and an independent judiciary.
Thursday, January 26, 2006
Sweeping victory for who?
Can any democratically elected government be un-palatable to US? Looks like the newly elected palestinian govt. is going to be formed by Hamas, which is considered by the US govt. to be a terrorist organization. The US policy is that they don't negotiate with terrorists. Is it OK to work with a democratically elected "terrorist" group? Will Hamas modify their ways to match the requirements put forth by US et. al. and give up their militant branch. Lets wait and watch.
Wednesday, January 18, 2006
Hindustani Classical Music Resources
I have learned tabla from Emam for couple of years, so I know little bit about and enjoy different kinds of taals but don't know anything about raaga. I do enjoy listening to vocals and wish to get back to learning tabla and perhaps hindustani music at some point in my life.
Skiing trip to kirkwood

We reached Tahoe on Saturday evening through the tail end of the storm. We had to put the chains on as it was snowing heavily, but I enjoyed the drive. After getting a good night's sleep, we started for Kirkwood at 9:30 AM on Sunday morning thinking that it would only take about an hour. Little did we realize that due to chains we would be travelling at only 25-30 mph. All the AWDs or 4x4s were zooming by us. Then as we got closer to the resort, we were stuck in bumper-to-bumper traffic for at least an hour and a half before we reached the gates at noon. Well, half a day on the slopes wouldn't be bad I thought, but I would have to work a little extra to get that as I would find. The friendly Kirkwood staff said that there was no more space for parking and were turning everyone around. We were so pissed as we had stayed in south lake. Everybody was heading back, but we didn't want to give-up just yet. We parked in a near-by gas station and decided to walk all the way in as all our friends were inside. To our surprise, there was no line at the rentals and since we had the lift tickets, we just took the equipment and hit the slopes. Kirkwood had excellent snow conditions and plenty of space on the slopes, just that their parking lot was smaller compared to others. We got a good 3.5 hours of snowboarding done on that day. Towards the end of the day the temp. was around 18 deg. fah. even though it was sunny all day. Yes, that is -8 deg celcius.
The next day was a lot better. The temp. was in higher twenties and no traffic. There was lot of parking when we got there at 10:30 AM. The conditions were great and we did get a whole day of snowboarding done. The trip back was very fast as Kirkwood is just 150 miles from the bay area. We are certainly going back.
(Picture taken by Priyank. Thanks Priyank!)

Thursday, December 15, 2005
Babua Khiladi Dadua Anadi
1000% profit is what is drawing some of the bollywood talent in Bhojpuri Phillum Industry.
Read this BBC Article
Some interesting tidbits:
Made on a modest budget of $65,000, Sasura Bada Paisawela took in over $3m at the box office. Daroga Babu mopped up nearly $900,000 on a similar budget.
Rani Chatterji - originally Sabiha Sheikh and renamed after Bollywood actress Rani Mukherjee - is the most popular actress.
To exploit the industry's potential, there is also a rush now to dub 40 Bollywood hits, including films like Sholay and Deewar, into Bhojpuri.
Imagine Sholay in Bhojpuri:
Arrey O sasur ka nati, kitney aadmi they?
Friday, December 09, 2005
Identity 2.0 presentation by Dick Hardt
Someone forwarded this presentation on Identity 2.0. It is extremely well done and uses powerpoint in a completely new way.
http://www.identity20.com/media/OSCON2005/
(Disclaimer: 15 min clip)
Monday, November 07, 2005
Where do IBonds fit in your portfolio?
Here are the advantages and disadvantages of IBonds that make it better than savings but little less liquid. In my previous post I mention what role do savings account play.
Advantages
- Liquid asset. It is the closest to cash/savings compared to any other investment vehicle.
- Guaranteed rate of return. This has fixed rate of return + variable rate based on semi annual inflation based on CPI.
- Inflation protected, thus you don't have to worry about inflation at all.
- Local and State tax exempt.
- You never lose money as these are U.S. govt. backed.
Disadvantages
- Withdrawal limits. One cannot withdraw within one year of ownership. You need to own them for at least one year. If money is withdrawn within 5 years there is a 3 month most recent 3 months interest penalty.
I think these bonds are great place to keep most of your savings after 5 years but you can't keep all your savings in IBonds as there is a 3 month interest penalty if you withdraw before 5 years. So, in case of emergency before 5 years, you might loose some money but the difference in ROI still makes it worthwhile keeping 80% of your savings after 15 months. Thus, start with keeping some of your savings in IBonds and after a year start moving funds slowly. This is almost like a CD except that the rate is inflation protected in IBonds and there is absolutely no penalty to withdraw anytime after 5 years.
Friday, November 04, 2005
Sony's Chutzpah
I think it is very brazen of Sony to do this for Digital Rights Management. No one wants anyone to have some invisible utility installed on the computer to keep you from copying a music CD. This basically hits directly those users who have no intention of p2p-ing these music files anyway. I will certainly not buy Sony music CDs till they publicly declare that they don't do this anymore. I think in the short run, it can only damage Sony's music sales since in today's networked world, this kind of news spreads like wildfire. I agree with BBC's Bill Thompson that in the long run Sony will find a way to make this happen, but in the short run, they are not getting my business. Besides, the hard core copiers who actually do the harm will find a way around this anyway.
Radio Shark is cool
Friday, October 07, 2005
Moral Policing by GOI
GOI = Government of India
Have you followed the passing of law to outlaw the dance bars from Mumbai and now to close the dance clubs in Bangalore? Well, I was in Mumbai when the dance bar closure issue was in the limelight and now, I am reading this article about Bangalore.
First let me differentiate between regular "Dance Clubs" and exotic "Dance Bars". I think I need to do this based on the comments I read after this article. Regular Dance Clubs are where people go to have a drink or two, dance with friends, meet friends and have fun. Some even go to meet someone new. Why would someone go to meet someone at a dance club, I don't know, but perhaps the full bar and alcohol brings the defences down and people are little more open to talking once they have some alcohol in their system. Music could be aother major factor as some people, including me, love dancing to good music. Dance Bars, on the contrary, have just girls of questionable character dancing. I say questionable because not all, I believe, are there for exploiting and wringing money by selling flesh, they might be there because of circumstances, desperate need for money, or other such reasons. These Dance Bars, are sometimes used as a door way to prostitution. I hope there is no more confusion in understanding a lounge or restaurant or a discotheque.
Now, should a govt. pass a law to outlaw Dance Bars? Perhaps, based on what kind of a society people living in that place want. I would say pass a law to outlaw prostitution and use the police force to enforce this law. Considering the social stigma people have for people with questionable character in India, I think the barrier to do such activities is already very high. If someone can convince me that enforcing a law like this is one of the most important issues plaguing the police department, then I wouldn't mind them spending their time enforcing such a law.
What about Dance Clubs, Lounges, Restaurants with bars/dance floors and Discotheques? They are there for very clean entertainment and even I wouldn't mind my kids going to such places. People go to such places to meet up with friends, eat, drink, talk, dance and have fun. There is nothing wrong about that. Why should then a government, which I believe has many more important things to do, pass a law regulating such places? Don't the police have other work like stopping illegal drug activities, improving the security of the place, not letting the son of that commissioner or that minister to not abuse his Dad's/Mom's power? Besides, do such activities stop after passing such a law?
People say, we should be proud of our own culture and not get influenced with western culture. Completely BS. You want your kids to talk in English, study in English medium schools, go to a "phoren" country to be better off, but when it comes to having fun in a place with good booze and music, you feel insecure? Is dancing to good music with friends while having a little booze such a bad thing and such a foreign thing to us? I don't think so. Is our culture so fragile and our values so weak that we will forget them by dancing to western music, which by the way has many Indian sounds/instruments nowadays? I have one thing to say to people who oppose these places, will your kids change to become someone you want them to be if they do not go to clubs or lounges?
With regards to making alcohol illegal, all I have to say is, it doesn't work. Alcohol is illegal in Gujarat, the western state of India, but people have easy access to alcohol by illegal markets. Tons of alcohol is smuggled in the state by road from Rajasthan and other states. I would rather that government illegalize consumption of alcohol before certain age, say 21 and then spend the energy to enforce such a law rather than making alcohol illegal. Agreed that easy access to alcohol will make even those few people drink who are on the borderline. But, will it be so bad if those borderline people drink a little in moderation? Every person has a right to enjoy life in his or her own way as far as it is not spoiling other's freedom, liberty and choice to do things. Please let the adults decide on their own what is good for them. They should have that much sense right? Let us not impose our ideologies and ways of life on other people.
Bangalore has grown so much despite the fact that its infrastructure is not able to keep pace with the growth. Shouldn't government there be busy to take this opportunity to change the face of bangalore, improve the governance and make services extremely streamlined and efficient? They have this golden opportunity to make use of the current preference of the tech industry to locate there and what are they busy doing? Creating a moral police. Sigh.
In a democracy, I believe sometimes we have to put up with something that we don't completely approve of. As far as it is not interfering with your way of life, let others do what they want. Live and let live.
Tuesday, October 04, 2005
Salman Rushdie's autographed book
Salman Rushdie was on SF Forum on Oct 3rd. Michael Krasny interviewed him and they talked about his new novel "Shalimar, The Clown". They announced that he would be at Books Inc. in Mountain View at 7:30 PM. It perfectly worked out for us, and Stuthi and I met him and got two of his books autographed. Midnight's children and Shalimar the clown. Unfortunately, it was a small bookstore and it was full by the time we got there, so we had to wait outside while he talked and answered questions inside.
Well, I have not read him but have heard from almost everyone who has read his stuff that he is one of the best novelist of our times. I will post my reviews later once I am done.
Saturday, October 01, 2005
Quadrant2: Retirement - Start early
Thursday, September 29, 2005
Writing to explore
I found this article corroborating what I have believed, that to explore an idea, a thought or a concept, writing is the best tool. If you put down your thoughts, you have a chance of not only explaining it to others, but also to make your beliefs clearer. You wouldn't discard stupid ideas or wouldn't even try to classify your thoughts or judge your thoughts, but when you write them down, you will be the first critic of your thoughts before anyone else, and that acts as a nice filter. What comes down is better than whats in your head. In this article Robert H. Frank, an economics professor at Cornell University has developed a nice economics 101 course to explain all the odd things in life. In the class students explore odd observations by writing about them. E.g. Why do drive through ATMs have instructions in braile? Why do women buy their wedding gowns and men rent the tux? Simple answer, "Its the economics stupid".
http://www.nytimes.com/2005/09/29/business/29scene.html
Wednesday, September 14, 2005
Financial prudence
Everybody's risk profiles are different. Some people can play more aggressively, some people cannot bear to get in debt, some people want more safety than others, hence use your own judgment to make decisions in your own money matters. I personally do not like the idea of improved standard of living on credit. However, I am not going to talk about how much should you invest in what, I will just layout my own strategy going forward. Of course, this is subject to change with more experience about the field and my relative risk taking ability.
When it comes to money how should one think about where to put the money? How much to save? How much to invest and in what? I think the first thing that a person needs to know is where he or she is and where he or she wants to go. This starts with knowing how much does the person spend on an average in a month. This, knowing what you earn and spend, will help you in finding out how much can you save or how much you need to. It is the basic cash flow management. If the outflow is more than the inflow, clearly a change in lifestyle is in order. After knowing your in-flows and outflows make sure you set aside some money for the rainy day, and you will have your share of rainy days sooner or later, no matter how much or how little you earn. As they say, its not how much you earn, its how wisely you spend.
I like to have 3 layers of safety nets with decreasing level of liquidity. Two very important concepts which cut through all of these are Dollar cost averaging and compound interest (or just compounding).
Lets first talk about these two before going any further.
a. Compound interest (or compounding):
Its a simple formula that we have learned and used in our primary school math education yet we do not really understand the implications of this very powerful tool.
The equation is: P = C (1 + r/n)^nt
where
r = interest rate (expressed as a fraction: eg. 0.06)
n = # of times per year interest is compounded
t = number of years invested
Let us assume you start with a capital of $10000, with 4% interest rate compounded twice a year (e.g. a 6 month CD) would produce a sum of $14859.47. That is a lot more than 4% per year.
http://www.webmath.com/compinterest.html
Here is a better java based graphic calculator which you can play around.
http://www.dinkytown.net/java/CompoundInterest.html
If the interest is compounded everyday or more number of times, the interest you gain increases.
b. Dollar cost averaging:
This is a known way of saving yourself from market volatility. It is a strategy where you invest a fixed amount at a fixed interval in the same asset. For e.g. Stock funds, Index funds or Bond funds. This protects you from the ups and downs of the markets and you can sleep at night without worrying about how you are doing that day. When the price of the stock fund goes down, your fixed amount buys more number of stocks and when the price goes up, your fixed amount will buy less of that fund. Thus, the value of all the stocks together will be averaged out. This is more advantageous if the stock/fund is more volatile. There are couple of websites which talk about this in detail.
http://www.fool.com/foolu/askfoolu/2002/askfoolu020523.htm
http://moneycentral.msn.com/articles/invest/invfund/1304.asp
Let us now talk about what are those three security nets.
1. Ca$h (Savings accounts)
You need this for first line of defence against any mishap in your life. This also works as a buffer if you overshoot in spending more than you earn in a month. This happens every now and then as there are some payments which are six monthly like your car insurance or automatic saving plans or that speeding ticket, anniversary, birthday etc. Every Tom Dick and Chaudhary has an account in ING direct. It gives you the best interest rate as it doesn't have actual brick buildings like other banks and hence has lower expenses. Of course, this cannot replace the banks/ATM network which is necessary. So, splitting your savings account between the two kinds of banks, internet based higher interest paying vs. brick and mortar and lower interest paying, is prudent.
2. CDs or FDs (Certificate of deposits or Fixed deposits)
It is necessary to put some of your savings in CDs. There is no point in making all your savings earn a paltry interest in a savings account when you know you won't need this money. This is something which doesn't give you money instantly like the savings account and thus, protects you against your impulsive behaviour to blow away your savings account. This is something which you should be able to tap into if in the hour of the need, your savings run out. In my philosophy, you should have enough money to survive 1 year without any income while maintaining your current standard of living. 6 months worth of supply in saving and remaining in 6 month CDs. Of course you can do your own combo throwing in a CD ladder. I say, 1 year but this period is flexible and should be decided by the individual depending on the kind of industry that a person works in, the market conditions which can dictate how soon can you find another job and their own needs.
3. Investments (Stocks, funds, real estate etc)
After having put your house in order, then you should start thinking about making your rest of the money earn a little more than paltry interest that banks give you. If you see historically, the markets have given 8-9% returns annually over a long period of time. In my opinion investing in stocks is a gamble, you never know what is going to happen and when all the institutional investors will dump the stocks making your returns suffer. So, in my opinion first you should do indexing with automatic saving plan and sleep with peace of mind that you will earn at least 8% annually without sweating the news every minute with one finger on the sell button. I am not saying you shouldn't invest in stocks, just that even if you can analyze the company by its financial statements (balance sheet, cash flow statement, income statements and its annual report) you do not have the time to look for the latest news every minute. Even if you did this daily, you might earn good amount few years and then make terrible losses in other years bringing your rate of return the same as indexing if not worse. It is a well known fact that 85% of the active fund managers are beat by the market every year. So, if you just do indexing with automatic saving plan, you can be assured of beating 85% of the oh-so-smart fund managers.
Real estate is a separate game altogether. In my opinion, first I would like to have a roof over my head somewhere if all hell broke loose. After that, you can begin to buy your primary residence where you are working by taking out a huge loan. Keep in mind that debt to income ratio of 4-5 is as high as you should go. Anything higher than that is a huge risk. In my opinion, the bubble or inflated asset value shouldn't be a concern as far as you can take care of the loan in the worst possible increased interest rate scenario. After all, you are not going to earn the same salary all your life. But, go in for a long haul vs. a quick 3-5 year stint as any asset, even with real estate, the prices do not go up faster than other fundamentals like economy and incomes. If they do, be assured that they will come back to the real gains. According to finance professor at Univ. of Pennsylvania, Jeremy Siegel, average asset value of houses have gone up less than 1%, yes you read it correctly, less than 1% over a 100 year period. Two key things to keep in mind, it average and 100 year period.
Retirement Saving
Do not miss out of the opportunity to save for your retirement right from the beginning. The sooner you start, more money you save. It doesn't matter if you start small, but it is very important that you start early. Do not let go of any of your company's matching contribution to your 401K plan. In fact try to be as close to maximum as possible. Do not rely on social security as social security is going to be in trouble very soon. We do not know whether we will get that amount of money by the time we retire. So, actively manage your 401K investments. There are automatic funds like Fidelity freedom funds which invest very aggressively, meaning more in stocks and less in bonds, when you are young and as you get closer to your retirement age they reduce the investments in stocks and put more in safer bonds. I, at least now, like to take more control over how and where I invest my money.
I also believe that when you get older, you probably won't live in an area like downtown San Francisco and would like to live somewhere quieter. I believe in older age, you would probably need less money as you wouldn't take a season pass for snowboarding in Aspen. But this is me, make your own judgment and save for retirement but at the same time do live a little now.
Wednesday, July 13, 2005
Growth harms environment
Anonymous Claim:
The fear is widespread among environmentalists that free trade increases economic growth and that growth harms the environment. That fear is misplaced. Growth enables governments to tax and to raise resources for a variety of objectives, including the abatement of pollution and the general protection of the environment. Without such revenues, little can be achieved, no matter how pure one's motives may be.
Gaurav: The fear of environmentalists is not misplaced. They see what is going on around them and base their decisions on partial data without considering the whole picture.
Since the early twentieth century there has been a debate about whether central planning and control of production is better or free markets and free trade is better for the society at large. One needs to only look at east and west to find out which model of economic organization has delivered the goods for the people. I, being from India, have seen it firsthand what controlled markets and central planning can do to the resources of the planet and how much effective this model of economy can be. Not only the "commanding heights" of such a government has failed in improving the quality of lives of her people, but at the same time the productivity of people and resources has been abysmally low. Contrast that to the regulated, yet free-er markets of the western countries. Not only the quality of lives has been improved dramatically but utilization of resources has been great.
When left to the government, the economic growth gets stifled making people extremely poor. When you don't have means to earn your next meal, environmental issues don't really matter much. Ask a beggar in the slums of mumbai whether he cares about the pollution more or the fact that he can earn by cleaning the automobiles on the road? Chances are that he will favour food over environment, survival of his own and his family's over sustenance of natural resources.
If free markets are left alone, however, they will deplete the earth of its resources and constantly harm the environment making major climate changes, the effect of which we are already seeing in global warming. One of the extreme examples is United States. Due to free markets and free trade with lots of its partners, the quality of life has improved but at the cost of making US of A the most polluting country in the world. So much so that it is now finding it prohibitively expensive to ratify the Kyoto protocol which was authored by US itself. Thus, due to this market failure, the world is suffering.
Thus, the environmentalists' fears are not un-founded, the solution however lies in co-operation between governments and free markets.
Friday, July 01, 2005
End of the rainbow
Here is a small excerpt I would like to emphasize upon:
Ireland's advice is very simple: Make high school and college education free; make your corporate taxes low, simple and transparent; actively seek out global companies; open your economy to competition; speak English; keep your fiscal house in order; and build a consensus around the whole package with labor and management - then hang in there, because there will be bumps in the road - and you, too, can become one of the richest countries in Europe.
Friday, June 10, 2005
Friday, March 14, 2003
I have been appalled by the amount of american media coverage US's war waging endeavour against Iraq receives. There is nothing else on TV. We, normal citizens of the world only rely on media on what is going on. But,inquisitive mind is always asking questions. I always feel that things are not the way they seem to be. So, in search of truth these are some things which I came accross by reading different articles on this.
- Why would US spend billions of dollars if it is not interested in Iraq's oil ?
- Why would US be ready to pay around $10 billion to turkey to just use their land for staging US army ?
- Why would the most capitalist nation of all go after changing regime of a country which doesn't pose as serious a threat as Al-qaeda and other terrorist outfits do ?
- Why would president focus so much on waging a war when the ecconomy at home is in shambles ? In order to rely on a possible covert agreement that Iraq will flood the market with cheap oil and provide an economic stimulus ?
- Why would France and Russia oppose so vehemently to the most powerful nation's wish to change regime in Iraq if they didn't have vested interest in Iraq's oil ? Probably they haven't been promised a big enough chunk in future oil commensurate to their help in overthrowing the regime. Why is US is ready to go to war even without UN backing ? Has US considered and decided that risks involving going to the war alone outweigh the benefits she will be able to reap after the war is over assuming that the results are favorable ?
- Why is there no talk about helping the current rebellion in Iraq rather than external military aggression ? Is there no rebellion/awareness or the Iraqi people love their dictator ? If they do love their dictator, can't we just leave them alone ?
After reading all such things, it seems that all these powerful militarized governments are interested in their
vested interests rather than worrying about other people's lives. Capitalists want to take advantage of the resources available in the world till they create and innovate to create the next driver of their towering ecconomies. I wish the world was not such a selfish place . I wish the so called leaders in living a better quality life were also the leaders in living a morally better and responsible lives.
Just some random thoughts.