Linkfest: Michael Burry, Real Estate…

11 comments Written on March 5th, 2010 by
Categories: Readings
  • Michael Lewis on The Great One-Eyed Fund Manager Michael Burry. What an inspiring read.
  • Matt Taibbi on Rick Santelli’s rant on Predatory lending where he said “You can’t cheat an Honest Man”. Yeah, dude, come to India’s ULIP world and I’ll show you how honest people can easily be cheated out of their money. The similarity: Neither regulator gives a rat’s ass.
  • Mumbai’s BKC land auction fails to get a single bid. A 435 crore expectation for 34,000 sq. foot land didn’t get takers. A friend mails in details – for a (low) construction cost of Rs. 1000 per sq. ft., the project will cost nearly 600 crores, and with a 200 Rs. per sq. ft. rental, realisation will be 38 cr. a year, probably 25-30cr. after costs. That’s a cap-rate of 5%, when rents are as high than downtown Manhattan (where you can get $4 a month rents easy); Comparative returns in Manhattan are near 7% today.
  • DLF says levy on property tax is counterproductive. A clarification on wednesday noted that only 1/3rd of the agreement value is “service”, so only that portion will be taxed, reducing the quantum of increase to 3.33% on the agreement value. Weighing that as more important than the land sale failure in the earlier link, and the interest rate increases by banks, real estate players went up between 4% and 10% today. [I’m kidding. They could have gone up on any reason, but it’s fun to invent reasons for an indisputable fact]
  • Martin Wolf on the Indian Elephant charging through the crisis. He says that India’s GDP grew 14% in nominal (non inflation adjusted) terms in the last five years, so why are we cribbing about a 6% fiscal deficit?
  • Salil Tripathi on how India lost it’s M.F. Husain. I hardly get political on the blog but I find it dirty that a bunch of goons can hold anyone to ransom in this country. When a Raj Thackeray says obviously anti-someone things, there is no move to arrest him; because he is only talking, they say. M.F.Husain didn’t even talk – he just painted – and he should be arrested? We need to change this country; we’re younger than Husain, and we don’t have to leave.
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About the Author:
http://www.capitalmind.in
The man behind Capital Mind. Deepak is a co-founder at MarketVision, a financial knowledge company. Deepak also provides data research and consulting services, and now lives in Bangalore. Connect with him at deepakshenoy@gmail.com.

11 comments “Linkfest: Michael Burry, Real Estate…”

>Dude, be careful with such outspoken stuff. With your criticism of mid-east, you might not even get a Qatari citizenship

>Deepak: I am not sure why folks are getting so worked up over MF Husssain? Who is objecting to his return? As far as I know, govt has said that they will provide fullproof security if he decides to return. Besides, he has been claiming in his recent interviews that it is for personal and commercial reasons that he decided to stay wherever he is. I am a bit confused with all this stuff. Daal main kuchch kaala hai.

>Dear Deepak ji, I respect you and your articles & comments on financial markets / economy from the bottom of my heart…. With that i take privilege to request you to ""Please confine your comments only on the area where you are an expert & can give opinion without prejudice""…

Sorry, i am very much blunt in saying this: I love to hate your comments on MFH..

Regards

..

>A very balanced article on MF Husain issue is at http://www.virsanghvi.com/CounterPoint-ArticleDetail.aspx?ID=447

>Salil's article about Husain doesn't specify the details, but the overall picture. But my point is this: if 'offense' can involve litigation and court harrassment by, among parties,the government itself, then why a different tune for Raj Thackeray? Why not put out arrest warrants and cases on him too? Why not follow that up with the same intensity? Husain offends far lesser people than Thackeray.

Or for that matter, the way we behave with Taslima Nasreen! We claim to protect her from the Muslim fundamentalists? We don't arrest the idiots that claim they will kill Salman Rushdie. Basically we give in to whoever is more violent.

Husain's paintings were in the 1970s and the political parties have used this cunningly in the 90s and 2000s.

Btw, I must admit that while the court has cleared Husain, he still has over 1200 cases pending on which warrants can be issued any day, regardless of the supreme court judgement.

Also I have seen the paintings and they are hardly offensive.

It makes no sense to single out Husain, but we need to talk about this "goons running this country"; at this rate one day it will be time for all of us to choose which side we're on – the side of violence, or the side of even more violence to get rid of that violence. Why drive us to that end?

>Salil Trpathi writes:"Husain felt unsafe: He spent his summers in London, winters in Dubai. He apologized; he explained; he clarified. But nothing was enough for his detractors. Indian ambassadors abroad praised him, while police officers at home prepared arrest warrants. Courts threw the cases out and defended art, but the state dragged its feet. Some officials said the state would protect him, but Husain did not feel safe—to think, imagine and create, in peace.

And so he left."

Are you crazy? Thousands of techies leave India and go abroad and then many settle. Does that mean India is forcing them to leave? Another point is if he was so frustrated then why did he leave now at 94? Why didn't he leave in his prime when the entire world was out there for him to show his potential? There are surely a more important reason why he took another country's citizenship at this age. Did any one think about that reason? Imagine when you are 90+ and have everything in the world, and can live anywhere. What would matter to you? I think citizenship of a country will be down below in that priority list.

>Huh? He was going to get arrested if he came back – over 1200 cases! The law allows people like him to get harrassed but does not seem to apply for the goons themselves.

>Aw come on Deepak!! So he is evading arrest or saving himself from getting harrassed. And I am not talking about a tribal woman here who gets "harrassed" everyday but a very very popular person for whom getting police protection, having his own fleet of security people, battery of media people defending him through everything, and someone having his own army of lawyers. And you are saying he left because he was scared?? There are many people in Husains' shoes in India (did i mention Shah Rukh Khan, Amitabh, Sachin who are getting critiqued for no reason).
That's the cost of becoming famous dude!! You need to handle it and he handled it well until now when there's another Business proposition for which he needs to do few things differently and this is one of them. This is pure business that's all.

Thank Indian govt. for not revoking the Indian citizenship which would be automatic if dual citizenship was not allowed.

>I disagree – the point is not about harassment, it's about selective harassment. For the same Funda, a Raj Thackeray doesn't get anything, a Husain gets 1000s of cases. Sachin/Shah Rukh etc. get another set.

And he was harassed, there's no doubt about it, 25 years after he drew those paintings and no one gave a damn. Stupid laws have made a mockery of freedom of expression, and for the kind of paintings he did, utterly disgusting that he was going to be arrested for it.

The point is: We are being run by goons, and I am not standing for it. One day you will be the minority and then you'll understand. But then, it's too late.

>Deepak – I think you are using the term harassment incorrectly. Let me ask you a question. If you (Indian citizens here) are greatly disturbed about something and if you think you know the person (MFH) responsible for it then what would you do?

1. File a case against him
2. Go vandalize his house.

You are saying that #1 is harassment. Filing of thousands of court cases are not harassment but its really an indication of the strong views of peace-loving citizens of this country against MFH's work. Folks have protested in a legal and peaceful manner which you choose to conveniently ignore.

BTW, Raj Thackarey was arrested last week and is out on bail. He too has many court cases pending against him. Did MFH ever get arrested for his court cases? Can I ask why MFH has being spared selectively or "selective harassment" to use your words? I am sure Raj T. won't be having thousand cases against him which tells me more people are mad at Husain than Raj T. Finally, if you don't want to hear citizens voice using legal methods how would we make sure that we will be heard? Remember terrorism/Naxal/Maoist? (Do every citizen have to go that way to be heard #2 option above? Why filing court cases not a good idea?)

>To clarify: The law that allows people to file cases anywhere in India if they are "offended" is stupid. Raj T has nowhere near those numbers, and it's not because people aren't offended – more people are, but the system simply doesn't allow them to register cases (such cases must be registerd by the cops/establishment)

When there actually was a case filed in Bihar the Raj T fellow cringed in pain and they changed the system again to benefit him by moving cases to, whoopee, maharashtra. If that's ok, they should do the same by clubbing stuff against Husain together (they didn't).

Granted, people have a right to file cases, but this specific law needs to be removed or made non-criminal/bailable/clubbable (so multiple cases get heard together) In this particular case it's a mockery of the law – the paintings were unoffensive for 20 years before someone got a bug in their butt.

And, when the likes of Raj T. and Bajrang Dal threatened that they will do something – and actually did it by vandalising his places – NOTHING happens against them. The same laws if applied to them would result in nonbailable offences. Yet, none of the cases were in that category. Remember,the cops must make those cases – not other people. The 1200 odd cases have substantial cases by the establishment, not by other "aggrieved" people. (Those cases are bailable/Husain doesn't have so much of an issue with them and anyone can be on the other end of that)

You say vandalising his house is not harrassment? It is and guess what, the penalty for vandalising his house is less than the penalty by him painting this stuff. Our laws suck.

I fully support legal protests. I think the law – like section 377, or the anti-dowry act where no evidence need be submitted for people to get arrested – is sick and has to be changed. There are umpteen MF Husains out there who have been destroyed unfairly by such laws, and it far outweighs the few that are benefited. We therefore need to change this to a more equitable system.

Enough on this topic here. Please mail me (deepakshenoy at gmail) to talk more – this blog is not the right place for detailed discussions. I will digress once in a while but not too far.