KQ Newsletter #8, ‘Satyam’ – A Black Swan in the Stock Markets
January 08, 2009
The KQ Newsletter–
Your best karma-changing resource on the web.
Issue #008, Thursday, January 8, 2009. Published Monthly.
In my previous newsletter (#7) I said: “We have seen the equity market going into free-fall, liquidity drying up, industry and investors losing confidence in the financial stability of the Indian and global markets. The Indian financial system is on the sick-list, and doesn’t seem to be getting better.”
January 7, 2009
This morning, a black swan event rocked the Indian stock markets further. It was unexpected, maximum impact, with much after-the-fact analysis and reasoning which will no doubt be forthcoming from the experts in days to come. A typical negative black swan. (Click for a black swan article–opens a new window.)
The IT giant Satyam (meaning ‘truth’) was exposed as having perpetrated an ongoing fraud on its shareholders for years. Satyam Chairman Raju’s confessional letter to the Board and the SEBI said that he falsified the accounts of the company by over Rs. 5,000 crores ($1 Billion). Other estimates put this amount at 7,000 crores ($1.4 Billion).
Today Satyam shares plunged worldwide. It lost 77% of its markets capitalization in India (to drop from its previous closing from 179 to 40 today). In the American markets Satyam’s ADR opened dropping 90% from its previous close. Led by Reliance and Satyam, The Indian stock market indices fell–Sensex (7%) and the Nifty (6%).
Satyam’s long-time auditors, the international renowned firm of Price Waterhouse Coopers are in deep, deep trouble as well because they certified that a non-existent $1 Billion was present in banks. The Institute of Chartered Accountants of India (ICAI) is considering blacklisting PWC if found guilty of malpractice or collusion.
The subject of how to protect oneself financially has been dealt with in a previous newsletter #7 –(scroll down to this section in it)–“What does an investor do now?” (opens new window).
The point is that how does one protect oneself from other life-events in the same category?
Therefore it is of the greatest importance that we have this karmic or event healing capability and work with this to improve the quality of our lives in every way.
We have detailed many effective methods on our website with which you can immediately start to heal your life–go here for these methods to change your karma today!
I invite you to explore these karmic healing methods, and when you are ready, also get connected to the karmic healing empowerment energies to help yourself and family members. This year’s seminar schedule is given here. (Opens new window.)
Blessings, love and light for success, peace, prosperity, protection and progress in this new year–Be with the Force!
Nalin K. Nirula
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