The document discusses debt, economic growth, and financial stabilization packages. It argues that debt should be called "strangle(t)" instead of "leverage" as unrestrained debt usage has led to economic troubles. It questions prioritizing growth over steady progress on social and environmental factors. Large financial bailouts will only delay problems and reappear as inflation or asset bubbles. Fundamental changes like reducing debt and increasing income are needed to truly solve economic issues, not ongoing financial packages. As an example, a $1 trillion package to stabilize the Euro is equivalent to a year's economic output of 1.15 billion Indians, showing the immense sums involved that will still not fix underlying debt problems.

1. Alliance Consultants – Altruistic Advisory
Simple Truths
You know when I was a kid, we were taught this simple saying “give a thief a rope that is long
enough and he will hang himself”.
Years later as an adult, when I am looking at how things are shaping up in Europe, US, Dubai etc,
I wish more people had learnt it or more importantly remembered it.
Debt on Balance Sheets should not be called “Leverage”, it should be called “strangle(t)”. I mean
look at what the indiscriminate use of debt has led to over the years. We seem to be so consumed
by this notion of (fast) growth that we (and I mean in macro perspective – family, business
houses, states, nations, economies, governments) are prepared to go to the extent of hanging
ourselves up.
It’s about time we redefined our measurement yardsticks to include more sensible terms like
progress, that would in turn be a factor of social upliftment, environmental conservation, hard
work, efficiency (not to be mistaken as replacement of mechanical human labour with robots),
etc. Look at the basics – what do we really want? Growth, a statistic at the cost of millions of
people that constitute a nation and the earth or we want steady progress that betters the human
race, makes the earth a better place for the future generations to come. Who is to lay the
foundation to that? It’s we right and that’s not going to happen by throwing Trillion dollar
packages in our face each time there is trouble brewing. Burying our heads in the sands in the
hope of ridding ourselves of the trouble is not the solution. When did procrastination ever solve a
problem. The debt packages will come back to haunt us in the forms of inflation, asset bubbles,
etc, the world of finance is so interlinked that there is no escape from these after effects.
If I were to borrow money from a bank and declare myself as being near bankrupt would it extend
a bailout package to me? I know some of you would say that if I were a big enough customer (so
big that if I fail to repay the bank, the entire bank comes in jeopardy) the bank would have little
choice but to bail me out. But then is that prudent banking in the first place? There can be
consortium lending, why allow a customer to grow so big that he can threaten the entire bank.
Besides if things are being done threw a consortium isn’t there a higher probability that someone
will notice trouble brewing before it actually happens and would it not be ensured that I would
never be so big for a single bank so as to cause its failure in the event of me defaulting.
Look at this with a different analogy, if I were prone to a heart attack risk, due to the formation of
arterial blockage, can a doctor avert the heart attack forever by prescribing tablets that would
make my blood thinner? No, I have to take stock, undergo the heart surgery (at the risk of failure)
change my dietary habits, have a exercising routine and shape up. There are no two ways about
that. Similarly bankruptcy like situations can really be solved only by tightening the purse strings
and earning more income. It’s as vanilla as that.
Now just to give you a perspective of the $ 1 trillion emergency package that was initiated to
stabilize the Euro. The size of the entire Indian economy is $ 1.16 trillion (nominal GDP 2008).
Now that is what the efforts of 1.15 billion Indian people yield when they work for 365 days a
year. So that is the number of people and days it takes to create those many dollars that are being
doled out as a stabilization package.
Contact:- Premal B Thakkar M:- 990 900 8490 Email:- premalbthakkar@gmail.com

2. Alliance Consultants – Altruistic Advisory
Well you probably wondering, I am seated in India doing my fair bit for the trillion dollar
creation then how is this related in any way to me? Well the bearing of the package on the wealth
of the person in the Euro Zone and you might not be same but it does have an impact none the
less. A case in point is the recent correction and strong bounce back on the Indian (and world)
bourses over the last few trading sessions. So there is merit when we say that it does affect your
wealth. Now the question is what would it mean for the future and how best can you design your
portfolio to charter these uncertainties. Well, there is a way for it, but just as a doctor cannot
prescribe a universal dosage for all his patients so too we cannot design a universal portfolio for
all our clients (and prospective clients). Wealth Management at Alliance Consultants is a very
intimate and personalized service and you would have to meet us in person inorder to benefit
from it. So please call us at (0)990 900 8490 today.
Alliance Consultants’ Model Portfolio has Outperformed the BSE Sensex Consistently !!!
RISK - RETURN MATRIX of our MODEL PORTFOLIO
3 YRS CAGR for Out performance By
3 YRS CAGR 19. 27% Market/Sensex 12. 66% Our Portfolio 6.61%
Less Risk than
Sensex for Each
3 YRS STD of % 3 YRS STD of % Unit of Return
Change in Value of Change in Value of Out performance By Created for
Portfolio 1. 81% Sensex / Market 2. 33% Our Portfolio YOU.
Signed
Y.E.F.P. (Your Ethical Financial Planner)
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of steel. He is thus doubly-armed, and need fear neither demons nor men."
Contact:- Premal B Thakkar M:- 990 900 8490 Email:- premalbthakkar@gmail.com