The Power of Mistakes In the late 1970s, I played the badla market on Bombay’s Dalal Street. For a couple of months, I made easy money riding the price of Century Textiles, then one of the most actively traded stocks. Inevitably, the market moved against me, but I doubled down on my bet. The slide continued, and by the time I finally got out, I had lost more money than I was worth. The stock-broker was patient, and I was able to arrange a loan against my salary.
In an economy with low frictions and relatively free markets, a 21,000 Rs/night hotel would prompt other entrepreneurs to open more hotels, thus pushing the price down and generating more employment. But when opening a business, acquiring land, licenses is nearly impossible without proper 'Connections', we are left with economy that is not functioning for neither the middle class nor the poor. Hey, at least the poor have can vent their frustration by sloganeering and rioting against the muslims in the streets. Thats not nothing, right?
# 22 The Power of Mistakes, That Recovery
The next ten years are not going to be anything like the last ten years. Tighten your seat belts.
In an economy with low frictions and relatively free markets, a 21,000 Rs/night hotel would prompt other entrepreneurs to open more hotels, thus pushing the price down and generating more employment. But when opening a business, acquiring land, licenses is nearly impossible without proper 'Connections', we are left with economy that is not functioning for neither the middle class nor the poor. Hey, at least the poor have can vent their frustration by sloganeering and rioting against the muslims in the streets. Thats not nothing, right?