The Great American Dream

"The American Dream is a national ethos of the United States in which freedom includes a promise of the possibility of prosperity and success. In the definition of the American Dream by James Truslow Adams in 1931, "life should be better and richer and fuller for everyone, with opportunity for each according to ability or achievement" regardless of social class or circumstances of birth. The idea of the American Dream is rooted in the United States Declaration of Independence which proclaims that "all men are created equal" and that they are "endowed by their Creator with certain inalienable Rights" including "Life, Liberty and the pursuit of Happiness."

Wikipedia

..and hence in the eternal pursuit of happiness, I decided to move to the United States of America. The great United States of America, which for years has dominated the world politics and dictated the global economics. A formidable power holding people around the globe in awe of its advancement in technology, economy, military and everything else. Home to hundreds of people whose contribution to society influenced million of life on this earth. Birthplace of most of the world's mega companies, whose products reach the remotest corners of the world. An economy parallel to none in it's absolute value. One of the largest aid giver on the planet and beacon to the rest of the world, not just in the form of the government but also in it's way of life. While at the same time commanding fear and anxiety for it's unimaginable military presence, covert missions, economic sanctions and last but not the least it's deceptive foreign policies.

On the 10th of August 2011, with a brief stay at Zurich, I landed at the JKF. This was my fifth trip abroad and US was at country number 21 in the list. I have previously visited other great world cities like Singapore, HK, Paris and Berlin but none commanded more apprehension and excitement then the so called "the capital of the world", New York. Crossing the aerobridge at JFK, I gazed out of the tall glass walls into the wistful afternoon summer sunshine and said to myself "So, here it is..this is it.. the United States of America".

But, beyond its glittering facade, there were observations that were telling. The following words/phrases summs up my first impression of New York.
Dirty ( definately dirtier than Singapore, Switzerland, Germany, Austria and the Scandinavian countries)
Expensive (one of the most expensive places, I have been so far)
Spanish (the second language in NY, spoken by many)
Frendly (most people are in general)
No open spaces (Manhattan in cramped)
Subway (largest and one of the most dense network, I have ever seen.)
Multi-ethnic peole representing hundreds of countries
Beggars on the street and homeless people in the Subways.

Nonetheless, being a travel freak, I visited the following places in and around NY so far.
Statue of Liberty
Ellis Island
Empire state building
Times Square
New York Times HQ
Jersey City
Governors Island
Central Park
Staten Island
Rockway Peninsula
Coney Island
However, now, while I stand at an important juncture of my life, with a mixed feeling of apprehension and hope, I quote the lines of the current American President, Barack Obama.

" That is the American story. People, just like you, following their passions, determined to meet the times on their own terms. They weren't doing it for the money. Their titles weren't fancy. But they changed the course of history and so can you."

The world economy

I recently finished watching the season 4 of Prison break and cannot help but think of the current market situation in the words of T-Bags' famous lines "The captivity of negativity". Although the economic indicators are not promising, the market conditions have been made all the more bearish, by the whole environment of negativity created by the investment banks and disseminated by the print media. Both Bank of America Merrill Lynch and JP Morgan fanned fears by warning there was a two-in-five chance that the US would fall into another slump. Amidst the current situation of panic and distress, investments are fleeing out of the market, pulling the world economy into a shambles. 

European Central Bank, Frankfurt

La Défense, Paris

a. France dips to 0% growth rate.

Amidst the sexual-assault charges against the French IMF chief, Dominique Strauss-Kahn which does seem to die out, France awaits more crisis in the economic sphere. With the recent release of second quarter statistics by the National Institute for Statistics and Economic Studies (INSEE), economic growth fell to 0% dashing expectations of a modest expansion, as consumers sharply cut spending. This makes the French government plans to cut the budget deficit even more difficult. The data fueled concerns that France, a key player in supporting euro countries in bailout programs, might struggle to meet its deficit targets. In this scenario, while the text book suggests two remedial measures a. raising taxes and b. cutting government expenditures, these are all more unlikely keeping in view the presidential elections in May 2012.  

b. Economic powerhouse of Germany moving into slowdown. Germany cuts deficit faster than expected

German GDP growth jumped to 5.5%, at an annualized rate, in the first quarter, and some softening was widely anticipated last quarter. But a report last week showing just 0.5% growth, at an annualized rate, raised concerns that, like other industrial economies, Germany faces a lengthy stagnation if the global economy doesn't find its footing quickly. Earlier this year, Germany showed a strong recovery and decades-low unemployment, but the optimism was short lived. The slowdown of this economic powerhouse will adversely affect the 17-member euro bloc. Amidst all these the German Finance Ministry announced to slash down the budget deficit to 1.5% from 2.5% for the year 2011-12. The ministry further expects the growth of the country to touch 3% for this year. 

c. UK has it's own economic problems.

British economy is struggling and is lagging behind the world's leading economies. Growth in the UK in the 12 months to June was just 0.7%, weaker than any of the other OECD "major seven" nations except Japan, which contracted 0.9% as it confronted the aftermath of the earthquake and tsunami. However, UK grew by 0.2% in the three months to June compared to the 0.1% growth of Germany in the same period. 

d. Italy in crisis. 

Italian economy appears in tatters, as the country plunges into the vicious cycle of rising debt and austeriity measures. While the recently announced austerity package of EUR 45.5 bn may bring down the debt GDP ratio to 120% (already the second highest in Europe after Greece), it may yet choke the economic growth needed to sustain the huge debt. 

e. Hungary's problem. 

Hungary faces the problem of rising value of the Swiss Franc. The appreciation of the Swiss franc has placed enormous financial pressure on households across Hungary, Poland and Croatia that took out Swiss-franc loans in the middle of the last decade because they had far lower interest rates than loans in their domestic currencies. These debt woes have acted as a brake on national economic growth, dragging on consumer confidence and spending, and pushing governments to act. Economists estimates that Swiss franc-denominated debt is equivalent to between 15% and 20% of Hungarian gross domestic product. 

An untenable ideology of a lost time..

Hong Kong Island

Off the coast of Guangdong in China where the Pearl River flows into the China sea is the mountainous island of Hong Kong. Since 1841, when it was ceded to Britain, and because of its strategic location, the island was one of the Britain's crown possessions. With deep natural harbor, the island formed the principal shipping centers in the far eastern waters. Being a major sea port, the island attracted people from far and wide. Later new territories and the area called Kowloon were added to the existing principality of Hong Kong. When the British settled in Hong Kong in the early 19th century, they called it the Gateway to China. Now almost a century later, it exists as an international hub for finance and commerce. True to its spirit, the city boasts as the Asia's world city.

On December the 11th 2010, I was in Hong Kong. After a 12 hours journey, with glimpses of 2 other Asian capitals, I reached HKIA at 6pm in the evening. The following account is a recollection of thoughts and facts that accompanied me on the 16th day of December, while I traveled to Lamma Island, some 5 kms south of the Hong Kong Island.

Sixty-nine years ago, on 8th day of December 1941, less than eight hours after the attack on Pearl Harbor, the soldiers of the Japanese Imperial Army, launched a massive attack on the British territory of Hong Kong. The combined strength of the British, Canadian and Indian forces was no match to raging Japanese forces. Within hours the imperial army captures large swathes of the new territories in the north. Amidst the confusion at the British side, before they could put into effect any of their defence plans, they faced another fatal blow. A barrage of Japanese bomber planes devastated the Royal Air force Aircrafts stationed at the Kai Tak Airport. In following 2 days, the Japanese, had Kowloon under their control and the main island laid just 400 meters across the sea.

Fear and reprehension swarmed the government offices at the island city. Many committed suicide while some tried to fly away. For those who remained it was just the beginning of the years of extreme consequences.

Back in Europe, matters were worse, Germany seemed unstoppable. While the whole of Europe laid under the German occupation, Britain was preparing for a war that would stretch it to its limits. Ten Downing Street was busy devising strategy to defend itself from the impending war and ignored the frantic calls from the east, the Governor of Hong Kong, Sir Mark Aitchison Young.

By the afternoon of 25 December 1941, in Hong Kong it was clear that further resistance would be futile and after series of meetings with the British colonial officials the Governor of Hong Kong, Sir Mark Aitchison Young, surrendered in person at the Japanese headquarters on the third floor of the Peninsula Hong Kong hotel. This was the first occasion on which a British Crown Colony has surrendered to an invading force.



Peninsula Hong Kong hotel

The following years saw Japan turning into a formidable and belligerent nation. The island nation saw troops all around its territories. Nearby islands turned into army dens with trenches and firing locations all along its magnificent cliffs. Beaches turned into naval bases and cliffs were cut in to make way for water caves. Lo So Shing was one such beach with "Kamikaze Caves" along the cliffs nearby which housed hidden speedboats which were used to make a suicidal attack in needed.

Those were terrible times and had terrible consequences. The crimes inflicted by man on man were horrid and unimaginable and the pain was unbearable. Four years later the war came to an end. Unfortunately, the end was even more macabre than the beginning.

Years later I was standing on the Lo Shing beach in the south of Lamma Island, looking at the relentless South China Sea and imaging life during those tragic years.

Amidst the Bavarian Alps

Ever wondered the castle behind the Walt Disney logo might be real. Well, we all have seen this castle hundreds of times in many of the Walt Disney’s motion pictures. Remember the childhood fairy tales- The Snow White and Seven Dwarfs, The Sleeping Beauty or Cinderella. A haunting palace was generally shown on a distant hill as the refuge of a reclusive witch. Ever wondered where on earth that castle could be.

Three miles north of the Austrian Border on the German side there is a beautiful city of Füssen. The city is located at the edge of Alpine foothills having lakes all around and surrounded by the colossal snow covered peaks of the Bavarian Alps. An hour away from Munich and situated at the southern end of a theme route called Romantische Straße, the city serves as one of the most travelled destination, in the whole of Bavaria for a weekend get-away. Three miles to the south-east of the city, situated on the top of a mountain is the famous fairy tale castle, the Neuschwanstein. Regular shuttle busses operate between the Castle and the Füssen Station.

At 5:15 in the morning I was freezing on the platform of München-Pasing station.I was waiting for the train to Fussen with a change at an intermediate station.Last few days had been extremely taxing.With a day long excurtion into the Back Forest a day before and a 4 hr overnight journey from Kalsruhe to Munich, I was dead tired.Half an hour later the train rolled in.I stepped inside, found a seat and was soon deep into sleep. An hour later,I continued sleeping as the train crossed the intermediate station at which I was supposed to alight and catch the train to Fussen. Moments later when I woke I found I was out of my way.Fortunately, I took the next train back, managed to reach the intermdediate station and then to Fusssen.

Misfortune continued and I missed the shuttle bus to the Neuschwanstein Castle. As the next bus was an hour later I decided to walk down the 5 km road to the Castle. It was a refreshing experience. I passed by the beautiful lakes and rivers of the Alpine forest, took pictures and relaxed for sometime in solitude.

Neuschwanstein castle was opened to public in 1886 after the death of a reclusive Bavarian King, Friedrich Wilhelm Ludwig. The Castle consists of several individual structures erected on the top of a cliff ridge with magnificent towers, turrets, gables, balconies, pinnacles and sculptures all around. The castle stands amidst the breathtaking views of the Bavarian Alps.

On my way back to Munich I was sitting beside an old lady who was an English teacher at a school in Munich. She was delighted to know that I was a Maths major and was on an internship in Germany supported by the DAAD. More interestingly and to my utter surprise she had heard of the IIT’s and its prominence in the world. She had spent few years in San Francisco, US and knew a few Indians from IIT’s working there. She acknowledged the contribution of Indians in the prosperity of the Bay Area and said that she would be more than happy to see people from India studying in Germany and contributing to the German economy. I felt proud being an Indian. Unfortunately the conversation couldn’t go for long. I had to alight and take the next train to Dresden.

From the Third Reich

My last trip in Germany was the trip to the Rugen Islands.I always wanted to end my European sojourn in the same way as Michael Palin did in the "New Europe"-standing on the shore of the Baltic Sea and looking nostalgically to the relentless sea.

It was a bright sunny day with the chalk cliffs of the Jasmund National Park glistening at a distance in the afternoon sun.Around me was an air of indolence.People were lazing around in the beach amidst the soporific effect of the warm breeze.Few were reading books others basking in the sun .A group of young adult were busy speaking German and driking beer,a frivolous child ran frenzily here and there apparently in an attempt to draw the attention of his parents who appeared unwilling to pay any attention.Couples were busy careassing and kissing each other.The sea laid silent throwing itself into periodic weak tides. The cold water swept under my feet occasionally leaving behind shells and flotsam as it receded back.I turned around and gazed incredulously at a huge building; mesmerized and awed by its sheer size.In front of me stood a clossal building complex,obscure and downtrodden amisdt the tall grasses around it.

I was in Prora in the north-eastern corner of Germany and the mammoth building infront of my eyes was the last existing monument constructed by the Third Reich.This Nazi building complex was built between 1936 and 1939 as a Kraft durch Freude ("Strength Through Joy") project. The buildings extend over a length of 4.5 km and are roughly 150 m from the beach.It consists of eight buildings which are identical.They were planned as a holiday locale but remained unused forever.The buildings were never occupied.Now, as it was then,no one knows what to do with it.The buildings stands defiantly unwilling to crumble.The daunting structure brings with itself ghastly memories of human sufferings associated with it.

I ventured inside one of these buildings but was soon overwhelmed by the stink of rotting wodden planks strewn all around. I returned back from Prora with heavy head thinking about "Hitler" and the era under the Third Reich.

A bygone Era

Ever fancied taking a stroll down an English countryside.Well, not far from here on the way from the IIT campus to Kharagpur Railway Station,we pass through the Waynne Avenue ,First ,Second and the Third Avenues.Today, neither the streets are known by their fanciful colonial names nor is a speck of the Britishness to be seen around.As usual the streets have now taken the names of some obscure local personalities and the landscape remains distinctly rustic typical to a downtrodden communist town of West Bengal.Above and below are some of the picture from an era lost into the sands of time.

Mail from Emanuel Derman

[Emanuel Derman is one of the biggest name in the contemporary world of quantitative analysis.Details can be found at http://en.wikipedia.org/wiki/Emanuel_Derman . ]

Amidst the unending saga of load and mugging the night before exam, a mail from Emanuel Derman pops up in my inbox.Though a general mail sent to all the selected students of the MFE program (Columbia University NY), the very name of 'Derman' undersigned with the mail brings a nice respite before the inevitable infliction due to happen couple of hours from now.

As for the news today,I will comment on my subsequent posts.Following are today's top stories in brief.

1.As expected Indo-Pakistan Secretary level talks ends without a joint statement.

2.Environment minister cries about his thankless job!!

3.Economic Survey 2010 conducted by the Finance Ministry advices to roll back economic incentives.

4.MF Husain finds peace finally being a Qatar national.

5.World wide clamor after Israel puts into effect an ultra secret high profile execution in Dubai.

This post is written just couple of hours before the M&A exam!!