My everyday tidbits...

New Nike Cricket Ad

Nike has come up with a new cricket ad which truly captures the essence of cricket in the Indian subcontinent. The background setting is a chaotic traffic jam in a place which looks like Mumbai. A bus carrying cricketers get stuck in the jam and out of the love for game a couple of them climb up the roof of the bus and start playing. Just like in any gully cricket or phatta match in India people start pitching and the team grows. But wait, the best hasn't come yet - yes, the best part of the ad is it's background music. It sounds so fit for the ad that you will start humming it even though you might not make any sense out of it!

Have fun:

What a wonderful world!

Louis Armstrong sang a truly beautiful song - What a wonderful world. The beauty of the song lies in it's lyrics as well as the way it has been sung. A true masterpiece, it makes you feel good and happy :).

The video of the song is available at the end of the post. Parts of the video belong to the movie - Good Morning Vietnam.

If you wish to sing along the lyrics goes as follow -

I see trees of green........ red roses too
I see 'em bloom..... for me and you
And I think to myself....what a wonderful world.

I see skies of blue.....n clouds of white
Bright blessed days....dark sacred nights
And I think to myself .....what a wonderful world.

The colors of a rainbow.....so pretty ..in the sky
Are also on the faces.....of people ..going by
I see friends shaking hands.....sayin.. how do you do
Theyre really sayin......i love you.

I hear babies cry...... I watch them grow
Theyll learn much more.....n I'll never know
And I think to myself .....what a wonderful world.


You Tube Videos

Google had recently purchased a fast growing online video sharing site - You Tube. You Tube has been a runaway success and commands the majority market share in the video sharing business. As of now You Tube doesn't publish any ads to generate income but it is expected to do so in the near future by following the famous google model. With faster internet speeds all over the world this video sharing is bound to gain popularity.

CRR and Repo Rates

The Reserve Bank of India(RBI) had recently released a notification to increase the CRR by 0.5% in two stages. This led to most major banks increasing their lending rates with ICICI bank taking the lead. But what exactly is CRR and why does it have an effect on the lending rates.

CRR or the Cash Reserve Ratio is the amount that the banks have to keep with RBI. This amount is kept as an interest free deposit by the RBI. Increasing the CRR has to main effects - one it constricts the money supply and second that the banks lose out on interests for their deposit with RBI. As more borrowers are running after lesser available money the lending rates are bound to go up.

Apart from CRR, RBI also controls the Repo rate and the reverse repo rate. Both of these are effective controls in the monetary policy. Repo rate is the rate at which the RBI lends the money to the banks while Reverse repo rate is the rate at which RBI borrows the money from various banks. An increase in either of them can lead to an increase in lending rates for the banks. If repo rate is increased borrowing becomes costlier for the banks and they tend to pass the increased costs to the customers. Similarly, if the reverse repo rate increases banks might find it advantageous to deposit the money with RBI which is essentially risk free. The increase in lending rate offsets the risk that the banks have to take.