In this week’s wrapup, we talk about the Modern Monetary Theory, Evergrande Crisis, Urban Planning, the Zee-Sony merger, and lastly Iron Ore prices.
But if you want to check out the Markets edition this week before you go about reading the wrapup, don't forget to click the link here. It's about Real Estate stocks.
Is Modern Monetary Theory the answer to everything?
Last week we talked about Sri Lanka’s ongoing economic crisis. Although the story was largely about what was ailing Sri Lanka’s economy, we also happened to briefly speak about how it would be ill-advised for the country to print new money while attempting to wriggle out of the current crisis. But soon after, we received some interesting comments from our readers - most notably people who seemed to advocate the Modern Monetary Theory. Naturally, we felt duty-bound to offer you a more straightforward and expanded take on the matter. So, if you like reading up on economic theories, you should definitely not miss Monday's Newsletter.
What you should know about the Chinese Evergrande Crisis
Many have equated the Evergrande Crisis in China with the fall of the Lehman brothers in 2008 - when the US investment bank crumbled under its debt burden and precipitated a global financial crisis. Then there are others who doubt that the effects of a real estate company failing in China are hardly something to be concerned about. In all likelihood, the truth is somewhere in between and if you are wondering what that is. You can check out Tuesday's Newsletter.
The Urban Planning Crisis
Right now only ~34% of Indians live in urban areas but India is fast becoming an urban country. According to some government findings, more than half of our population could come to reside in an urban setting within just a few decades. So it’s in everybody’s best interest to make cities more liveable. And with that goal in mind, NITI Aayog has come up with a 144-page long report on urbanization and urban planning. And if you don't have the time to read the full draft, you can check out our simplified take on the matter here.
Understanding the Zee-Sony Marriage
Zee Entertainment and Sony Pictures India decided to merge their operations and create an entertainment behemoth that will have $2 billion in combined annual revenues, around 75 channels across multiple genres, and a 26% viewership share. And while those are exceptional stats, the only thing everyone could talk about was how Zee pulled this off. And if you're wondering the same, we have a nice little explainer just for you. More details here.
Is the Iron Ore rally over?
A few months ago, we witnessed a spectacular rally in iron ore prices. However, things have soured quite considerably since then. From the highs of $235 a tonne in May to under $100 recently, iron ore prices have sunk by a fair margin. So the question is — Why? Why on earth is this happening right now?
Well, the answer lies in a combination of factors and if you want to get the full picture, all you have to do is read the Friday Newsletter.