Hacker News Reader

Comment by safog | Hacker News Reader

He's too big to fail status in India, so it'll be interesting to see how their short position unfolds. They can keep the scam going for much longer than Hindenburg can keep their short I imagine.

View on HN

According to Wikipedia Adani is in with Modi, the current Indian prime minster who likes to play favourites. Thus he could get quite a bit of protection at home.

But that may not protect him from a market run...

Wikipedia is a reliable source?

Bruh, Everyone knows Adani and Modi are pals

Ever heard of license raj?

license raj culminated in 1991 economic crisis for india.

It can. Indian Govt protects/can intervene through LIC India which invests in companies like this. In the past during major downturns, LIC with its huge cash pile acted as a backstop.

That's what Hanjin thought in Korea. Closely tied to a chaebol. Too big and too well connected to fail. Until they weren't.

Why do you think Hidenburg released this research? They want to move the market and also pressure his position.

I don't understand why any entity is "too big to fail".

You don’t have to because you don’t matter. Enough people will just nod and accept the explanation for why their tax dollars are being given to billionaires that your voice doesn’t matter.

I think it's usually that the company's failure would have too large an impact on the economy or other dependent companies, so it will get bailed out by the dependents or the government.

Modi used Adani planes during election campaign. Adani and Modi are close since his Gujarat CM days. He truly is too big to fail.

https://timesofindia.indiatimes.com/news/fleet-of-3-aircraft...

My understanding is that if an entity going down results in a widespread wealth destruction in the entire domain then it's deemed to be too-big-to-fail. It would in turn lead to social unrest threatening the stability of government. Like a huge lender going bust would lead to credit shrinkage leading to millions of small/medium businesses going bust.

Exactly. It's not 'too big to fail,' it's 'too big for the Government to let fail.'

Yup you're right. It's more like Adani's lenders might threaten social stability if Adani becomes insolvent. But I'm pretty sure the govt will give SBI a cash injection and have them loan that amount to Adani in the event that things actually get bad.

> But I'm pretty sure the govt will give SBI a cash injection and have them loan that amount to Adani in the event that things actually get bad.

It's exactly (in content) what I wrote to my friends while we were discussing this in WhatsApp.

"If push comes to shove RBI could well bail out Adani through some complicated deal....they'll bail out LIC and SBI for sure...through those entities I meant not directly"

Sometimes, you just need to cut the cancer out.

adani will take down entire indian economy with it.

Reply on news.ycombinator.com