<ul><li><strong>Sluggish growth in deposits is a major concern for banks, as higher rates are likely to impact margins in the near term. <br /><br /></strong></li><li><strong>Kotak’s analysts have built in a negative thesis on the NIM outlook in the medium term.<br /><br /></strong></li><li><strong>Race to hike term-deposit rates by public sector banks likely to impact return on assets and delay any re-rating.</strong><br /></li></ul>Financialisation of household savings is expected to have a far-reaching impact on the banking sector. So far, banks have enjoyed the benefits of low-cost deposits as Indians kept their money with banks in the form of deposits. But with the equity cult going mainstream, banks are in for a choppy ride. Bank stocks have been rallying for the last several weeks, as credit growth is picking up pace and profitability has been robust. <br /><br />But there’s a problem: the pace of credit growth is way slower than deposit growth. This essentially means that Indians are either drawing money from banks to spend or are redeploying funds to other asset classes. What this essentially implies is that banks will have to increase deposit rates even further if they wish to convince depositors to park their monies with them. This is a risk that institutional investors are now worried about as higher deposit rates could impact the net interest margins of lenders. In a bid to attract stable longer-term deposits, many banks are offering interest rates of 7% even. Many analysts believe that this may trigger a competition between banks to attract more deposits.  <br /><br />According to <keyword id="152996" type="General" weightage="50" keywordseo="kotak-institutional-equities" source="Orion">Kotak Institutional Equities</keyword>, “It is perhaps reasonable to conclude that depositors are drawing down on their excess savings or changing the nature of their savings.” And higher interest rates are unlikely to change this behaviour as the historical relationship between interest rates and growth is not strong, claim analysts.<br /><br />According to a report by Kotak Institutional Equities, banks have increased their interest rates on deposits and are currently comfortable, as their loans are re-pricing higher. But it has a more open ended approach to NIMs (net interest margins). Kotak’s analysts have built in a negative thesis on the NIM outlook in the medium term, but they say that several variables can change this. <br /><br />So what is making analysts nervous? Well it isn’t just <keyword id="6357420" type="General" weightage="100" keywordseo="mercedes" source="Orion">Mercedes</keyword> that is facing competition from systematic investment plans of retail investors through which retail investors are putting chunks of their savings into equity-oriented mutual funds. <keyword id="6409502" type="General" weightage="20" keywordseo="bank-deposits" source="Orion">Bank deposits</keyword> are no longer as popular with Indians as they used to be. After being flush with surplus savings that Indians could not spend during the pandemic, deposit growth is lagging loan growth. <br /><br />Recent data shows that while deposits are growing at roughly 10% year-on-year, there is deceleration in current and savings account deposit growth. In contrast credit growth stands at 17%. What is, however, growing fast are the term deposit growth, which are more expensive as banks have to pay a higher interest rate on these than the money that sits in savings accounts and current accounts. Worryingly, deposits are decelerating in the metro and urban markets. According to Kotak, deposit growth could recover from current levels, but the drivers are still not that clear. In the interim, expect a reasonably competitive environment where banks continuously re-price their deposits higher.<br /><br />The best source of term deposits for banks are the metro markets. According to Kotak, the metropolitan market accounts for 60% of the overall term deposit book, and growth has touched 12% annually, which is the best in recent years. The breadth of recovery is not uniform after the pandemic. While Western India (which accounts for 30% of term deposits) has grown at the fastest pace, the South is weak on term deposits as well as CASA. <br /><br />When loans are being deployed faster than deposits are coming in, the ratio of loans to deposits goes for a toss. Currently, the LDR (loan to deposit ratio) for public sector banks is at 68% while it is at 88% for private sector banks. Public sector banks are already in a race to lower lending rates and hike deposit rates to corner more market share from private banks. However, this will impact their spreads – the difference between the interest rates they get from borrowers and what they pay to depositors – over the near-term. <br /><br />According to Jefferies, “Despite having lower loan to deposit ratio, PSU banks have materially raised term deposit rates in the 2 year bucket. We believe this reflects their softer deposit growth (8% YoY vs. 9% for sector and 13% for private banks) and potentially their view that liquidity may stay tighter for some time.” While capitalisation and asset quality of public sector banks have improved, their return on assets continues to be between 0.6-0.8%, but intense competition to attract deposits could impact returns of public sector banks. <br /><br />Shares of most public sector banks have rallied since the September quarter numbers as their performance was solid. However, going forward higher costs could eat into their profitability, thereby, preventing a re-rating. Jefferies further says: “Select banks are offering 7% interest rates for 2yr deposit rates. We believe that PNB's strategy of offering higher term deposit rates and lower lending rates could be a drag on spreads.” <br /><br /><strong>SEE ALSO <br /><br /><a href="https://www.businessinsider.in/business/corporates/news/gland-pharma-announces-acquisition-of-europes-cenexi-group-for-120-mn-shares-fall-4-37/articleshow/95875718.cms">Gland Pharma announces acquisition of Europe’s Cenexi Group for €120 mn, shares fall 4.37%</a><br /><br /></strong><a href="https://www.businessinsider.in/finance/news/india-on-course-to-become-worlds-second-largest-economy-by-2050-says-gautam-adani/articleshow/95622223.cms"><strong>India on course to become world’s second largest economy by 2050, says Gautam Adani</strong></a><br /><br /><br />

It’s not just Mercedes, even bank deposits are competing with equities

<ul class="summary-list"><li><keyword id="6358835" type="UNKNOWN" weightage="60" keywordseo="Electric-cars">Electric cars</keyword> are hitting the market at a dizzying pace. </li><li>More than 10 new EVs will go on sale in the US by the end of 2021. </li><li>The Lucid Air sedan, Porsche Taycan Cross Turismo wagon, and GMC Hummer EV truck launch in 2021. </li></ul><p>Long gone are the days when a Tesla, Nissan Leaf, or Chevy Bolt were practically the only options if you wanted a car that sipped electrons rather than gulping gasoline. </p><p>There are <a href="https://www.businessinsider.com/new-electric-cars-for-sale-2021-4">around 20 electric vehicles for sale in the US</a> right now, ranging from luxury SUVs to economical compact crossovers. But many, many more are on the way. </p><p>In the next five to 10 years, the number of new <keyword id="6354973" type="UNKNOWN" weightage="60" keywordseo="electric-vehicles">electric vehicles</keyword> on the market is set to be staggering as big automakers like <a href="https://www.businessinsider.com/4-things-volkswagen-did-to-make-newest-ev-work-us-2020-9">Volkswagen</a>, <a href="https://www.businessinsider.com/mary-barra-gm-management-style-ceo-strategy-pivot-to-electric-2021-4">General Motors</a>, and <a href="https://www.businessinsider.com/dodge-electric-muscle-car-2024-tesla-model-s-plaid-2021-7">Stellantis</a> spend billions upon billions to greenify their lineups. </p><p>And in just the rest of 2021, plenty of new EVs are set to hit US streets from scrappy upstarts and established manufacturers alike. Here are nine to look out for:</p><h2>Audi E-Tron GT</h2><div type="image" title="Audi RS E-Tron GT" height="1661" width="2500" msid="84267880" hostid="261"></div><p>Audi has talked up the E-Tron GT for a while now. After finally <a href="https://www.businessinsider.com/audi-e-tron-gt-electric-sedan-performance-horsepower-specs-2021-2">unveiling the real thing</a> in February, Audi is close to shipping off the first units. </p><p>The epically quick four-seat sedan starts at roughly $100,000 for the base model, which puts out 469 horsepower and has a range of 238 miles. The $140,000 high-performance RS version generates 590 horsepower and hits 60 mph in 3.1 seconds, Audi says. So it's no surprise that that model is a <a href="https://www.businessinsider.com/ev-first-drive-audi-e-tron-gt-electric-sedan-2021-5">pure joy to drive</a>. </p><h2><keyword id="6355119" type="ORGANIZATION" weightage="60" keywordseo="bmw">BMW</keyword> i4</h2><div type="image" title="2022 BMW i4 EV" height="1214" width="1619" msid="84267882" hostid="261"></div><p>BMW canceled the long-running i3 hatchback this month to make room for a new era of EVs. That includes <a href="https://www.businessinsider.com/bmw-i4-ev-sedan-range-specs-horsepower-2021-3">the i4</a>, a battery-powered car that hits at the core of what the German automaker does best: make sleek and sporty luxury sedans. </p><p>The brand's first electric sedan, the i4 will have an EPA-estimated range of 300 miles and will put out up to 530 horsepower, according to BMW. There will also be a performance model. </p><h2>GMC Hummer EV</h2><div type="image" title="2020 hummer ev reveal infinityroof 013 GMC Hummer BT1XX FN RoofOFF v1 1" height="907" width="1613" msid="84267884" hostid="261"></div><p>The gas-guzzling Hummer is getting an unlikely second life as a zero-emission EV.</p><p>GM calls the <a href="https://www.businessinsider.com/gmc-hummer-ev-electric-pickup-truck-photos-features-specs-2020-10">2022 GMC Hummer EV</a> a "supertruck" and says it will offer 1,000 horsepower and 350 miles of range. The $112,595 <a href="https://www.businessinsider.com/2022-hummer-ev-edition-1-coolest-features-gmc-electric-pickup-2020-10">"Edition 1" model</a> will be available to reservation holders this fall, with a handful of other trim levels to follow. </p><p>An <a href="https://www.businessinsider.com/gmc-hummer-ev-suv-cost-release-range-2021-4">SUV version</a> is also on the way for 2023. </p><h2>Hyundai Ioniq 5</h2><div type="image" title="Hyundai Ioniq 5._10" height="1874" width="2500" msid="84267886" hostid="261"></div><p>Hyundai is launching a new brand for EVs called Ioniq, and the first vehicle from that brand is the <a href="https://www.businessinsider.com/hyundai-ioniq-5-ev-suv-tesla-volkswagen-electric-range-evs-2021-2">Ioniq 5</a>. The striking little SUV will come in all-wheel-drive and rear-wheel-drive options and will be able to travel nearly 300 miles on a charge, Hyundai says. </p><p>There's no word yet on pricing for the 2022 Ioniq 5, but we should learn more closer to when the model goes on sale this fall. </p><h2>Lucid Air</h2><div type="image" title="Lucid Air, an electric luxury sedan." height="1309" width="1746" msid="84267887" hostid="261"></div><p>Five years after it first showed off a prototype of the Air sedan, <keyword id="3904314" type="PERSON" weightage="60" keywordseo="lucid-motors">Lucid Motors</keyword> is almost ready to start delivering its debut vehicle. </p><p>With an impressive EPA-estimated range of up to 517 miles and an enticing starting price of $77,400, the Lucid Air takes direct aim at the Model S. But historically, it's been extraordinarily difficult to get a new car company off the ground. </p><p>Lucid has had to delay production due to the pandemic and related supply constraints. Still, the company's CEO Peter Rawlinson <a href="https://www.businessinsider.com/rivian-rival-lucid-fixing-bad-parts-77000-air-peter-rawlinson-2021-6">told Insider</a> the company is on track to start delivering Airs this year. </p><h2><keyword id="25952" type="CITY" weightage="60" keywordseo="Mercedes-Benz">Mercedes-Benz</keyword> EQS</h2><div type="image" title="Mercedes EQS" height="1229" width="2000" msid="84267888" hostid="261"></div><p>The EQS, <a href="https://www.businessinsider.com/mercedes-eqs-ev-debut-price-range-specs-interior-2021-4">revealed in April</a>, will be Mercedes-Benz's first EV for the US when it goes on sale this fall. A long, luxurious land yacht, it's something of an electric twin to the company's longtime flagship, the S-Class sedan. </p><p>According to Mercedes, the EQS will get 478 miles of range, putting it near the top of the US market. It will offer a gargantuan 56-inch "<a href="https://www.businessinsider.com/mercedes-eqs-ev-mbux-hyperscreen-massive-56-inch-electric-vehicle-2021-1">Hyperscreen</a>" that spans the car's entire width as an option. </p><p>Mercedes hasn't disclosed pricing yet, but expect it to run you at least $100,000 to start. </p><h2>Porsche Taycan Cross Turismo</h2><div type="image" title="2021 Porsche Taycan Cross Turismo._9" height="1416" width="1888" msid="84267889" hostid="261"></div><p>Porsche is following up its first EV - the Taycan - with a new model that claims the title of the world's first electric station wagon. Porsche claims the <a href="https://www.businessinsider.com/porsche-taycan-4s-turbo-s-cross-turismo-ev-wagon-ebikes-2021-3">Taycan Cross Turismo</a> is a crossover SUV, but come on, just look at it. </p><p>The Cross Turismo gets extra ground clearance, more cargo space, a Gravel Mode, and more protective cladding. The wagon will come in four versions, all of which sport all-wheel drive as standard. The Taycan Cross Turismo starts at $91,000 and hits dealers this summer. </p><h2>Rivian R1T</h2><div type="image" title="Rivian R1T pickup truck" height="871" width="1091" msid="84267892" hostid="261"></div><p>Expect to start seeing <a href="https://www.businessinsider.com/what-is-rivian-ev-startup-amazon-backed-tesla-challenger-2021-2">Rivian's</a> electric pickups whirring down streets and off-road trails in the very near future since people who preordered Launch-Edition models should start receiving their trucks in July. </p><p>The California startup has emerged as one of the most promising Tesla challengers, armed with billions in funding, a massive deal to build Amazon's delivery vans.</p><p>Its outdoorsy trucks start at $67,500 and offer 300-plus miles of range. </p><h2>Rivian R1S</h2><div type="image" title="Rivian R1T R1S" height="1209" width="1613" msid="84267895" hostid="261"></div><p>The R1T isn't the only new model rolling out of Rivian's Illinois factory this year. The R1S, a luxury SUV that looks somewhat like an electric Range Rover, also hits streets this summer. It's a bit more expensive than the truck, starting at $70,000. </p><p>The SUV can be optioned with five or seven seats and, like its pickup stablemate, has <a href="https://www.businessinsider.com/rivian-r1t-does-360-degree-turns-video-tesla-cybertruck-rival-2019-12">the ability to spin in place</a> like a tank. </p>

From Porsche's $91,000 station wagon to GMC's 1,000-horsepower pickup, here are 9 of the coolest electric vehicles launching in 2021

<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd"><html><body><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><a href="http://www.mbusa.com/mercedes/index" target="_blank"><img src="https://static-ssl.businessinsider.com/image/553a994c69beddc668439041-918-468/screen%20shot%202015-04-24%20at%203.22.12%20pm.png" border="0" alt="Car from front" /></a><p class="source"><span>Mercedes-Benz</span></p></div><p></p></div></div>The new <a href="http://www.mbusa.com/mercedes/future/model/model-All_New_2015_S550_Hybrid" target="_blank">Mercedes-Benz S-Class Plug-In Hybrid</a> drives green but rides in style. Step inside this revolutionary vehicle and you'll see what the automaker means when it says, "The best or nothing." The cabin is palatial, but finely detailed, and set among the latest in technology. You'll immediately note the vehicle's hand-stitched leather, brushed aluminum accents, and top-flight craftsmanship. You'll experience an interior temperature you preset on your phone - before you've even entered the car. And you'll be riding with the most advanced safety systems in the world: technologies designed to help keep you in your lane, alert at the wheel, and a safe distance from the car in front of you. But this Mercedes-Benz is also a plug-in hybrid. Sometimes it <em>is</em> easy being green<em>.</em></p><h3>1. Plugs into an ordinary socket.</h3><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><a href="http://www.mbusa.com/mercedes/index" target="_blank"><img src="https://static-ssl.businessinsider.com/image/553a9b0f69beddca6843904a-920-470/screen%20shot%202015-04-24%20at%203.22.41%20pm.png" border="0" alt="Screen Shot 2015 04 24 at 3.22.41 PM" style="color: #000000; line-height: normal;" /></a><p class="source"><span>Mercedes-Benz</span></p></div><p></p></div></div></p><p>An intelligent on-board system makes charging easy - you can do it from any conventional household power socket in fewer than three hours. An automatic lock also ensures that your power cord won't get accidentally yanked out. In the future it will be even easier and faster to charge the S-Class Plug-In Hybrid; you'll be able to use fast, "cableless" inductive charging.</p><h3>2. Makes your world exactly like you want it.</h3><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/555b59deeab8ea8c70891f6e-917-482/screen%20shot%202015-05-19%20at%2011.40.25%20am.png" border="0" alt="S-Class Plug-in Hybrid"><p class="source"><span>Mercedes-Benz</span></p></img></div><p></p></div></div></p><p>Set among the cabin's hand-stitched leather and exotic woods are unheard of features, such as a fragrance system that can fill the car with a subtle aroma. It also has a multizone LED ambient lighting system with seven color options for the storage areas, footwells, and even the instrument displays. Those are just a few of the ways the S-Class Plug-In Hybrid lets drivers change the environment and maybe even relieve stress while they're on the road. Comfort is paramount with the S-Class Plug-In Hybrid. It even allows drivers  to use the automatic climate control to preset the cabin temperature they prefer from their phones - before they open the car door. </p><h3>3. You can choose how you want to go: hybrid, gas, or electric.</h3><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><a href="http://www.mbusa.com/mercedes/index" target="_blank"><img src="https://static-ssl.businessinsider.com/image/55429ef369bedd8d5a0cf6fa-1200-800/s550_plug_in_hybrid__38_.jpg" border="0" alt="Mercedes S550_PLUG_IN_HYBRID__38_" /></a><p class="source"><span>Mercedes-Benz</span></p></div><p></p></div></div></p><p>The S-Class Plug-In Hybrid drives the way you want it to - and it's going to automatically make your choice as efficient as possible. With the transmission-mode switch, you can select from four driving modes: Hybrid (drive with gas and electric sharing the duties), E-Mode (use only the electric motor), E-Save (you can disengage the electric motor), and Charge (charge the car in fewer than three hours).</p><h3><strong>4. Expect top performance from this engine.</strong></h3><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><a href="http://www.mbusa.com/mercedes/index" target="_blank"><img src="https://static-ssl.businessinsider.com/image/55429829eab8eaad2130cec5-1200-800/s550_plug_in_hybrid__8_.jpg" border="0" alt="Mercedes S550_PLUG_IN_HYBRID__8_" style="line-height: 1.5em;" /></a><p class="source"><span>Mercedes-Benz</span></p></div><p></p></div></div></p><div class="page" title="Page 2"><div class="layoutArea"><div class="column"><p>The engine is a turbocharged V6 with a high-tech hybrid drive - just like the Mercedes-Benz Formula 1 racing car. This car may sip gas like a 4-cylinder, but it rides like a V8, with a system output of 436 horsepower and a 0-to-62 mph time of 5.2 seconds.</p><h3>5. Makes great driving easy.</h3><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><a href="http://www.mbusa.com/mercedes/index" target="_blank"><img src="https://static-ssl.businessinsider.com/image/5542997969bedde43f0cf6fa-1200-800/s550_plug_in_hybrid__28_.jpg" border="0" alt="Mercedes S550_PLUG_IN_HYBRID__28_" /></a><p class="source"><span>Mercedes-Benz</span></p></div><p></p></div></div></p><p>In all, driving the new S-Class Plug-In Hybrid is simple: Just turn it on and press the accelerator. It can automatically select the ideal driving mode and adapts to the battery status and traffic. Or you can drive it the way you want, setting the mode manually. It's now time to enjoy the revolution - in comfort and style.</p><p><em>This post is sponsored by <a href="http://www.mbusa.com/mercedes/index" target="_blank">Mercedes-Benz.</a></em></p><p>Find out <a href="http://www.businessinsider.com/sponsor-posts">more about Sponsored Content</a>.</p></div></div></div></body></html><p class="tagline"><strong>Follow BI Studios on <a href="https://twitter.com/bi_studios_" target="_blank">Twitter</a> and <a href="https://www.facebook.com/BusinessInsiderStudios" target="_blank">Facebook</a>.</strong></p>

5 ways this Mercedes-Benz plug-in hybrid is revolutionizing the luxury market

<ul><li>Investors are bullish on India and FPIs are regular buyers</li><li>An arbitrage fund is the <em>Shikhandi</em> of <em>Mahabharat<br /></em></li><li><em></em>Lacking in some areas like garments, auto components and soft toys and other manufactured goods</li></ul><em></em><br /><br /><em>India is the toast of the world at this moment. From steady macros to foreign investments, the interest in India has never been higher. In conversation with Malini Bhupta of Business Insider India, Nilesh Shah, Managing Director of Kotak Asset Management Company, says that India is delivering solid growth that is green and with superior governance standards. If foreign portfolio investors want to come back after their selling spree, it won’t be at cheap valuations. Shah also has very good money advice for those who want to get rich. Edited Excerpts: .</em><br /><em><br /></em><strong><cmsannotation type="cmsannotation" annotationid="Where are the markets headed? Can the dream run continue?" comment="subhead" text="Where are the markets headed? Can the dream run continue?"><span data-til="noop">Where are the markets headed? Can the dream run continue?</span></cmsannotation><br /><br /></strong>From here on markets are fairly priced. Investors are bullish on India and FPIs are regular buyers. In other markets, entry is easy and exit is difficult. In India, entry is difficult but exit is easy. If you want to take out $35 bn from the market, please be my guest, but if you want to buy then please join the party and pay double the price. Investor momentum is positive but you are buying into a fairly-priced market. There will be events like Fed pivot, RBI’s pivot, corporate earrings and election results that will impact markets in the near term.<br /><br />But if you cut out the noise and take a five or ten year view, this market is doing in one year what we used to do in 50 years - creating a GDP of $1 trillion. If we are going to become a $5 trillion economy and then $10 trillion then this is the journey to participate in. Unlike China, which also went from a few trillion dollars in GDP to $15 trillion, the governance standards of India are better. <br /><br />This growth will happen as India’s governance standards are comparable to the developed world. We are the only country adhering to COP26 targets. We are giving growth that is green with good governance. This is the deadly 3G.<br /><br /><strong><keyword id="17815609" type="General" weightage="80" keywordseo="mutual-funds" source="Denny">Mutual funds</keyword> have plummeted in May. What happened to net equity inflows last month?<br /><br /></strong>I think retail investors have matured a lot. Whenever markets are cheaper it is SIP plus subscription and our inflows go to 15-25k, whenever markets are expensive then it is SIP minus some redemption and our monthly inflows look like Rs 2k-3k. So, this is the maturity of investors. God forbid if markets go down tomorrow, I am sure money will flow. Earlier when markets used to correct, I used to call investors and reassure them. Now, when markets go down I get calls from distributors that more money will be sent. Hats off to mutual fund distributors, who have drilled the asset allocation principle into the minds of investors.<br /><br /><strong>Many have blamed mutual funds in the past that the demand for even luxury cars have been impacted thanks to mutual fund inflows. Do you agree?<br /><br /></strong>I don’t buy this because I have seen many people buy Mercedes after doing an SIP but rarely have I seen people defer buying a car to put money into mutual funds.<br /><br /><strong>Given that you don’t own a Mercedes or a BMW, what money advice would you give to investors?<br /><br /></strong>The first thing I tell people is that it should be income minus savings that should equal expenses, not income minus expenses equal to savings. I tell my staff and high networth investors the same thing. Make regular investments because timing the market is of no use and nobody has succeeded in doing that. And third, be a disciplined asset allocator. Everyone wants to have a look back option. Asset allocation always delivers better returns. When people ask me to demonstrate this, I show them my Kotak Multi Asset Allocator Fund of Fund, which is up 4x in 10 years. We divided between debt and equity. But now it also has gold. We do these 3 things; 10 years we did it 4 times and in 17 years 15 times.<br /><br /><strong>How do you expect India’s key export sectors to do that many parts of the world are in </strong><strong>recession?<br /><br /></strong>India is doing extremely well on services exports. I think 45% of all global captive centres are now in India. Their growth rate is even higher than IT and BPO services growth rate. Most people are realising that it is better to do business with India than China because IPRs are protected and there is value for money. There is delivery and professionalism. So, services export will continue to do well. On the goods export, we missed the bus in the ‘60s with Korea, ‘80s with China and in 2020 with countries like Bangladesh and Vietnam. We have to find our niche. In 2-wheelers and generic pharma we are world class players. We are developing seeing the same strength in mobile phones and toys. But there are areas where we are lacking, like readymade garments, auto components, and other manufactured goods including soft toys.<br /><br />The PLI scheme is a step in the right direction. We are incentivising manufacturers to set up their base in India and become part of the global supply chain management. We are lacking in some areas like garments, auto components and soft toys and other manufactured goods. It is a slow process but we are on the right track. Despite the world slowing, our market share in exports – both goods and services – will continue to rise.<br /><br /><strong>What about IT services?<br /><br /></strong>Our IT businesses today are doing well but the base has become big. The base is no longer a few billion dollars; it is a couple of hundred billion dollars. How do you grow on that base? If TCS has to grow by 10% it has to add 60,000 jobs on an employee base of 6 lakh. It is not going to be easy. We are now becoming part of the global macro. If the American banking system or insurance suffers, our IT order will suffer. But by investing for the future we’ll be able to overcome this. Earlier we were into – let’s say - Y2K 2000. Then we moved into application and infrastructure management. Then we went into product development, then cyber security, cloud computing, digital solutions. We have to keep increasing value-add in IT services in order to retain a major part of this business opportunity. It is a long story but we have to keep chugging along.<br /><br /><strong>You had asked during the pandemic as to why no Indian company had developed a Zoom like app for video conferencing. Has Indian IT missed the innovation bus?<br /><br /></strong>Let me give you a cricket analogy. If you see most Indian cricketers were not playing hook shots and we used to duck against bouncers. Now our players don’t mind hooking – it was an evolution and we copied from others. Similarly Silicon Valley is willing to fund risk and innovation. Now Indian companies are getting into it. I think core banking will be driven world over by a TCS or Infosys product. In payment, if UPI goes out, it is better than anywhere in the world. Slowly our IT companies will pick up pace in products too. What we did in core banking solutions we can do across sectors.<br /><br /><strong>The Reserve Bank of India has paused rate hikes. Do you think that rate cuts will begin this year?<br /><br /></strong>I think that the RBI has done better than any other central bank. And the Governor getting the Central Bank of the Year award is testimony to that. They have all the options available to them. I think RBI will be driven by data. The central bank will ensure there is enough liquidity so that growth does not falter. It will keep short term interest rates high to deter inflation and rate cuts will begin after FOMC starts cutting rates. I think the rate cut cycle is a 2024 question and not a 2023 question.<br /><br /><strong>Do you think it is a good time to look at debt?<br /><br /></strong>Investors have to look at their asset allocation and then decide. If you are under-invested in debt then it is a good time to invest in debt. But investors must keep in mind that the returns will not be the same over the next six months as seen in the last six months. Please don’t invest in debt funds because last six months returns were good. Please don’t invest in debt funds because you are worried about what will happen in equity markets. Take a call based on asset allocation. Over the next three years, rates will come down. Hence, it is important to lock into a longer duration debt fund with a three year plus horizon. Before March there were some tax advantages, but now debt funds are at par with bank fixed deposits. But the longer-term yield curve is still steep so investors can grab that opportunity.<br /><br /><strong>A lot of thematic funds are being launched. What is the reason for that?<br /><br /></strong>Most of us have completed the nine categories of large cap, mid and small cap funds. Now the only option available is thematic. We have seen that some thematic funds play out over a longer period of time. IT and Pharma were ones which started this thematic game. Now it’s moved into concepts like manufacturing &amp; infrastructure themes. Compared to normal equity funds, these are exotic funds - higher risk, higher return. They give concentrated exposure to a particular theme. And all themes are cyclical. You can’t expect a straight line because IT has done well. They come with higher risk and higher return. Thematics are higher risk compared to normal equity funds. If you have tasted the normal equity funds, then you can try the thematics for something extra.<br /><br /><strong>Arbitrage funds are now also being talked about. What is the advantage of investing in these funds?<br /><br /></strong>An arbitrage fund is the <em>Shikhandi</em> of <em>Mahabharat</em>. It is an equity fund in the eyes of the regulator but has the risk and return profile of a debt fund. We achieve this paradox by buying equity in the cash market and we sell futures. No matter what happens to equity prices I am hedged. I make my spread on arbitrage. That’s why investment is an equity but because you are not impacted by the price movements and your returns are always locked in, it has a debt kind of return and risk profile. Put together this is a fantastic product which gives you equity kind of taxation benefits and debt kind of risk/return profile. This creates an ideal opportunity for investors. It is a short-term product and money can be parked for 3, 6 or 9 months. This is a parking fund, it is not for investors.<br />

The deadly 3G of Indian equities – FPIs will have to pay double the price to join party again, says Nilesh Shah of Kotak AMC

<ul class="summary-list"><li>After I met Anwar at a cigar lounge and went on a date with him, we went to his friend's party.</li><li>At one point, his friend pulled me into the bathroom and told me Anwar was married with children.</li></ul><p>Anwar picked me up in a pristine, old-school Mercedes-Benz with blacked-out windows. He was wearing a black leather jacket and boots with aviators. I laughed when I saw him and wondered whether he had just watched "Top Gun."</p><p>We had met a few months earlier at a cigar lounge and went out once a couple of weeks later. He was funny, intelligent, and incredibly confident but a little too smooth and a little too cool. <a href="https://www.insider.com/behavior-scientist-shares-8-questions-to-ask-after-a-date-2022-12">I could tell he was an experienced dater</a>.</p><p>We grabbed a quick dinner and headed to his friend's house, where a group was gathered to watch a big UFC fight. Anwar opened the bottle of wine he brought for me. </p><p>I hit it off with a pretty, blond woman named Tatiana. I could feel Anwar's eyes on us as we chatted, and I knew instinctively that he did not like that I was talking to her. She made a couple of jabs at him but laughed and said they were all friends. </p><h2>When I connected with his friend, Anwar started to act strangely</h2><p>At the party, Anwar <a href="https://www.businessinsider.com/first-date-red-flags-2018-5#7-theyre-aggressively-romantic-7">was handsy and needy</a>, which annoyed me. He'd been a bit grabby on our first date, but this was ridiculous. I felt like he was putting on a show, but I liked the girls at the party so much that I told myself to avoid his advances and enjoy the evening. I had just met everyone, but they were all treating me like we'd known each other for years. I felt like a part of the group, and it was nice.</p><p>Tatiana and I continued to chat while Anwar worked the room and shook hands like an overly eager politician. While filling tiny solo cups with whiskey, she told me about her pending divorce, and I sipped. She said her ex dealt with addiction and that she should have left him a long time ago. She was 30; I told her I also divorced at 30. We bonded over our shared experiences. I noticed Anwar was still watching us talk from across the room.</p><p>Tatiana left to grab a bottle of wine from her car. Immediately, Anwar was back at my side and in my ear, telling me to watch out for her. </p><p>"Watch out for what?" I asked, laughing. </p><p>"Just be careful with her," he said. I wondered what he meant.</p><p>More people joined the gathering as the main UFC event began. All the women were friendly, but I noticed the men just looked at me, keeping their distance. I didn't know what to make of it.</p><h2>I was cornered in the bathroom and learned the truth</h2><p>When Anwar headed outside to smoke, Tatiana grabbed my hand and pulled me into a bathroom with her. She closed the door and blurted out, "<a href="https://www.insider.com/husband-supported-open-relationship-with-girlfriend-lgbtq-2023-5">You know he's married with kids</a>, right?"</p><p>"No!" I replied, because I didn't. However, I believed her — I had no reason not to. Everyone at the house seemed to be friends with Anwar. I asked her whether everyone at the party knew, and she said yes. I felt humiliated. </p><p>There was a knock at the door, and Tatiana opened it slowly. She pulled in a guy named Lev, whom I had briefly met earlier in the evening. He looked at her expectantly, like he knew what she would say.</p><p>"I told her," she said. He shook his head and replied: "We're not supposed to talk to Anwar's girls." It became clear this had happened before.</p><p>"I am not Anwar's girl," I protested. </p><p>Lev turned to me and said, "He treats you good, right?"</p><p>I looked at him incredulously and said, "He's freaking married."</p><p>Tatiana said, "Us girls have to stick together."</p><p>Lev gave her a look, like, "Here we go."</p><p>No one seemed to notice or care when Lev, Tatiana, and I all left the bathroom together, except Anwar, who looked panicked. He immediately escorted me onto the back patio. "I don't trust some of the people here," he said as he aggressively sucked at his cigarette.</p><p>I looked at him and decided at that moment to feign ignorance. "Really, why?" I asked.</p><p>"I just don't," he said, flicking ash. He looked down at his feet, then my face, and then his feet again, and I knew he was terrified that I had found him out.</p><h2>I wanted to beat Anwar at his own game</h2><p>I decided to teach Anwar a lesson. If he could pretend to be single, I could pretend to like him. I wanted to give him a taste of his own medicine and see how he liked it.</p><p>"I'm having a great time," I said, smiling. But Anwar continued to fidget, flicked his cigarette, and looked searchingly into my eyes. I looked at him blankly and asked with mock concern, "Do you want to leave?"</p><p>"I don't know," he said. Again, I reassured him that I was enjoying myself.</p><p>For the rest of the night, Anwar hardly left my side. He was practically guarding me from Tatiana, who smiled at me widely from across the room. I found the whole thing hilarious, especially when I thought about <a href="https://www.insider.com/love-bombing-or-anxiety-2023-5">texts he'd sent me</a> over the past few weeks saying he'd love to get married one day and have a family — the audacity of this guy. I decided to take it one step further, just for fun.</p><p>"We should take a trip," I said, leaning into Anwar and touching his thigh. He lit up like a Christmas tree.</p><p>"Really? Yes, anywhere you want to go. Just tell me when, and I'll make all the arrangements," he said, grabbing my hands. </p><p>I noticed a few guys watching Anwar. We walked over to talk to them, and one asked me, "He's a romantic guy, isn't he?" I put a hand on Anwar's chest and said, "Oh, yes."</p><p>The party started winding down. Anwar grabbed my hand, then told me we were going out for a nightcap. I laughed and reached for my phone to call an Uber.</p><p>"I've seen you take at least seven shots. I'm not letting you drive me anywhere," I told him. Anwar looked at me in disbelief.  </p><p>One of the sober wives of the men at the party offered to take me home, and I accepted her offer to avoid waiting for an Uber while Anwar continued pressuring me to leave with him.</p><h2>He reached from 3 numbers, which I blocked</h2><p>Anwar started blowing up my phone while I was in the woman's car. She said, "You know, don't you." I laughed and said yes. She asked me how I knew, but there was no way I was going to rat out my girl Tatiana, so I just told her I figured it out. </p><p>When I got home, I spent an hour <a href="https://www.businessinsider.com/guides/tech/how-to-block-a-number">blocking Anwar from not one, not two, but three different numbers</a> he tried to contact me from. He kept asking me via text and voicemail what was wrong, why I wouldn't answer his calls or texts, and, finally, why I kept blocking him. I didn't respond to any of his messages, but I have to admit, I was curious if he knew I had found him out.</p><h2>That night taught me to trust my instincts</h2><p>Months later, at the same cigar lounge where I met Anwar, I ran into some of the guys I met that evening. I was sitting at the bar with an old-fashioned when they invited me to join them at a nearby table. I was still feeling curious, so I did. </p><p>They tried to cover for Anwar by telling me he's a great guy. They made it sound like he and his wife had some kind of arrangement, but I reminded them I had no such arrangement, nor was I aware that he was married with children. They shook their heads as though I was blowing things out of proportion, and I wondered how often they ran interference for him like this.</p><p>Later that evening, I got a WhatsApp message asking, "Why did you block me everywhere and stop talking to me?" I blocked that number as well. Is it possible that he really didn't know I knew, or did he just want me to confirm it because he enjoyed drama? I still haven't figured it out.</p><p>Ultimately, the whole situation is an <a href="https://www.businessinsider.com/how-to-tell-the-difference-between-intuition-and-over-thinking-2018-2">excellent reminder to trust your instincts</a>. I knew from the moment I met Anwar that he had a player energy about him, yet I went out with him. I'm learning to trust my initial feelings about the people I go out with, and so far, I've been able to avoid married men — at least, to my knowledge.</p>

I accidentally dated a married man. At his friend's party, I learned everyone but me knew the truth.

<p class="enhanced-subtitle">The years of wild partying have ended. I went in search of survivors.</p><p class="drop-cap">To be successful on Wall Street, you have to be able to recognize the changing market winds — patterns that inform investors when it's time to get in and when they need to get out. Sometimes, the winds are a warm and inviting breeze: Assets rise in value and everyone seems to be making money. Other times, they turn into a violent gale, <a href="https://www.businessinsider.com/stock-market-crash-coming-wall-street-top-investors-warn-2023-2">leaving financial destruction and destitution</a> in their wake.</p><p>If any city was in the eye of the dramatic weather pattern that seized markets over the past few years, it was Miami. And if any city is <em>the</em> city where you can see just how remarkably things have shifted, it's also Miami. Consider it a financial weather vane perched on the Florida coast.</p><p>When I visited Miami in January 2021, the gentle winds of stimulus cash and pandemic-era savings had turned the city into the capital of crypto and a paradise for a new type of too-online stock jockey. But when I returned in January this year, signs of the market's meteorological reversal were everywhere.</p><p>Gone are the <a href="https://www.businessinsider.com/miami-club-owners-lose-top-spenders-ftx-crypto-downfall-report-2022-11">nearly daily happy hours at beachfront bars </a>where crypto guys in Crocs enthused about the newest coin. Traffic on Miami Beach's sexiest thoroughfare, Collins Avenue, is lighter. The home of the NBA's Miami Heat — which was hastily christened "FTX Arena" after the city signed a $135 million deal with the now collapsed cryptocurrency exchange — has already been renamed the "<a href="https://markets.businessinsider.com/news/currencies/crypto-ftx-miami-heat-nba-arena-name-judge-terminate-sponsorship-2023-1">Miami-Dade Arena</a>." And the gossip around town is that the repo man is coming for recently purchased Mercedes G Wagons — the unofficial status symbol of Miami's newly monied.</p><p>Not that the city's longtime residents are rattled by any of this. Miami has been home to many a frenzy — the land grabs of the 1920s, the cocaine boom of the '80s, and the real-estate bust of 2008. Every time there is a boom, the city is invaded. And every time there is an inevitable bust, the carpetbaggers clear. </p><p>The people who are able to really make it in Miami are a lot like the people who make it in the market: steady, clear-eyed, and attentive to the possibility of gale-force winds blowing in from the Caribbean overnight. And those who limp out after the winds shift leave with a lot fewer dollars but a handful of valuable lessons: Past performance is no guarantee of future returns, and sometimes when the sun shines, it burns.</p><h2>Miami bubble machine</h2><p>Miami is no stranger to swift injections of wealth. Yes, the city is an international financial hub, but it's also a free-wheeling port with a love for fast money <a href="https://www.businessinsider.com/florida-growth-jobs-economy-population-new-york-pandemic-employment-miami-2021-4">in a state with no income tax</a> — classically great conditions for forming financial bubbles. Miami Beach itself was born during the land rush of the '20s, when Carl Fisher built the town from sand dredged out of Biscayne Bay and average Americans began buying up plots in Florida sight-unseen. The author Christopher Knowlton argues in his book "<a href="https://affiliate.insider.com?amazonTrackingID=biauto-57700-20&amp;h=abc04630c2d3ac439d84db4eb669b28fd2f0f10b6c1b67bbf25e9f5588186981&amp;postID=64060f9fba7556528f4dfed7&amp;site=bi&amp;u=https%3A%2F%2Fwww.amazon.com%2FBubble-Sun-Florida-Brought-Depression%2Fdp%2F1982128372" target="_blank" rel="nofollow noopener sponsored">Bubble in the Sun</a>" that while this speculation didn't directly cause the Great Depression, "the Sunshine State did provide both the dynamite and the detonator."</p><p>If the draw in the 1920s was imaginary land, Miami's bubble in the 2020s was driven by imaginary money — crypto. Either way, the idea was the same: Buy into the hot investment and become fabulously wealthy in no time. When I visited Miami in February 2021, the vaccine rollout was just getting started. Californians and New Yorkers were fleeing <a href="https://www.businessinsider.com/florida-population-jobs-economy-housing-battle-new-york-california-2023-3">to Florida in record numbers</a> to escape the pandemic winter, find riches, or both. Miami, on the other hand, was raging as if there were no pandemic at all.</p><p>The stock market was on a stimulus-fueled heater, and the whole town knew somebody who was raking in money trading on Robinhood. You couldn't get a seat at Carbone, the extravagant red-sauce joint imported from New York City and known for catering to the stars. Living up to Miami's reputation for big <em>bienvenidos</em>, the city's mayor, <a href="https://www.businessinsider.com/miami-crypto-capital-miamicoin-francis-suarez-bitcoin-ftx-blocktower-capital-2022-2">Francis Suarez</a>, set himself up as a <a href="https://www.businessinsider.com/miami-tech-silicon-valley-tech-recession-stock-market-crash-2022-5">one-man welcome wagon</a> for the crypto crowd, the startup crowd, and any financial firm that might consider moving into town. As bitcoin surged above $40,000, the city published a "<a href="https://www.miamigov.com/My-Government/City-Officials/Mayor-Francis-Suarez/Bitcoin-White-Paper" target="_blank" rel="noopener">white paper</a>" that declared crypto would "transform the world," minted its <a href="https://qz.com/2165639/miamis-mayor-backed-miamicoin-then-its-price-dropped-95-percent" target="_blank" rel="noopener">own digital currency</a>, and started attracting the biggest names in digital finance. Crypto was injected into basically every Miami function, <a href="https://www.businessinsider.com/crypto-diehards-art-basel-took-home-ftx-swag-as-souvenirs-2022-12">especially its biggest annual festival</a>, Art Basel. With all the ease of Pitbull putting on a pair of aviator sunglasses, Miami absorbed the frenetic energy of an entire country frustrated by the pandemic and flush with cash.</p><p>"The pitch was like Miami's cocaine-cowboy days," a real-estate broker who specializes in selling high-end properties to rich newcomers told me. "'Come here, and it'll be free rein.' It didn't feel like the right move, but cash is still king in Miami." </p><div type="image" title="Musicians perform on stage in front of a crowd at night, with two big cartoon ape pictures on each side of the stage." height="1000" width="2000" msid="99011473" hostid="261"></div><p>The real-estate broker told me that during this boom, they took a lot of young men in the crypto world to see properties, though they rarely bought anything. They were cosplaying as wealthy real-estate gurus, the broker said, "trying to be an expert in something they didn't really understand," and they were often uninterested in whether a prospective deal made financial sense. There was a lack of grounding in their property viewings, often espoused by the improbable combination of naivety and a new girlfriend at every meeting.</p><p>Given the city's history of riding trends, it wasn't surprising that crypto and other tech startups based on short-order fads — <a href="https://www.metaverse.miami/" target="_blank" rel="noopener">think: metaverse</a> — found a home in Miami. What was odder was the <em>kind</em> of people who flocked to Miami for this latest speculative craze.</p><p>"If you're not comfortable <em>going out</em>, going out, Miami is a lot to handle," the real-estate broker told me. "I don't think any of them are exposed to nightlife. The things that you do in your 20s, these guys were doing for the first time."</p><p>At night, the crypto kids traveled in obvious packs of men dressed like boys at camp. And like boys at camp, their movements were confined to parts of town built to accommodate visitors at play. It's unclear whether that was for comfort or simply because they did not know where else to go. They had too much money to be spring breakers and too little idea what to do with it to be locals. They did not own white jeans, a staple of the Miami nightlife uniform, and could not tell the difference between a pretty woman flirting and one doing her job. They did, however, tip and spend well when instructed, I'm told. Miami — ever elastic — may have bent from crowding and been tired from teaching, but it did not break.</p><p>This is not to say that all the city's growth was built on the blockchain. There were more staid players of <a href="https://www.businessinsider.com/what-is-life-like-in-miami-first-person-account-citadel-2022-6">high finance who relocated as well</a>. Citadel — Wall Street's largest market maker and undisputed victor of the pandemic cycle — <a href="https://www.businessinsider.com/new-citadel-headquarters-miami-brickell-neighborhood-ken-griffin-2022-10">moved its headquarters</a> and <a href="https://www.thenextmiami.com/ken-griffins-citadel-announces-move-to-miami-supertall-hq-tower-coming/" target="_blank" rel="noopener">ultimately hundreds of employees</a> there from Chicago. But the real-estate broker told me there were clear differences between those heading south riding crypto cash and the more traditional finance people. Unlike the crypto kids, these traditional types showed up to view property with a family and a financial plan. It was clear that, like their employees, they were looking for a place to make a long-term deal — or, at the very least, a good school district.</p><p>Privately, Miami natives laughed when the newcomers<a href="https://www.businessinsider.com/how-ultra-wealthy-luxury-homeowners-prepare-for-hurricanes">ignored their warnings</a> about <a href="https://www.businessinsider.com/florida-residents-moving-leaving-climate-change-refugees-hurricanes-flood-2023-2">the anxiety of hurricane season</a> and the unbearable summer heat. The newcomers — and the crypto kids, especially — believed they could master Miami as easily as they had mastered the markets. Like so many before them, they had picked the right investment and become fabulously wealthy in no time. So how hard could it be?</p><h2>The rhythm is going to get you</h2><p>In spring 2022, this recent round of Miami novices learned the same lesson as speculators throughout the city's history: It can <em>literally</em> be pretty tough, bro.</p><p>After they spent two years riding high, the winds changed and the markets turned with a vengeance. Bitcoin started collapsing in March, going from a record high of over $60,000 to $16,200 by November. <a href="https://qz.com/2165639/miamis-mayor-backed-miamicoin-then-its-price-dropped-95-percent" target="_blank" rel="noopener">Miami coin fell 95%</a> from February to May. Tech stocks big and small got pounded too. The new Miami money party started to run out of libations.</p><p>The moment the music really stopped, though, was when FTX — which had been valued at $32 billion at its peak — collapsed in November and its wunderkind founder, Sam Bankman-Fried, was charged with fraud. It was a sucking sound heard across the crypto world, and other big names in the burgeoning industry — like <a href="https://techcrunch.com/2023/01/04/bankruptcy-judge-rules-celsius-network-owns-users-interest-bearing-crypto-accounts/?guccounter=1&amp;guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&amp;guce_referrer_sig=AQAAAC9POVUCB8hB48mufFvPn6QJCR0FQAsPFC1BvXYBRLanpApgsbnVsej-VObG4DBLcIgE5PtZmqAVOnrphA_aCEuMymOXvoIFf451PDxRydxOr8Vq-_ZloO6VaKf1KPYZiIEZ3F4t-YyCC1j5y62jrutH1rj582WzeUVKr0dddrAt#:~:text=Celsius%2C%20which%20was%20once%20one,and%20more%20than%20100%2C000%20creditors." target="_blank" rel="noopener">Celsius</a> and <a href="https://www.cnbc.com/2023/02/06/gemini-to-contribute-100-million-to-genesis-bankruptcy-recovery-plan.html" target="_blank" rel="noopener">Gemini</a> — were swept away shortly thereafter. In Miami, the crypto guys started disappearing from town. One bartender at a members-only beach club in South Beach, where the crypto kids tried to hold court, told me that it was a pretty quick vanishing act. They're all gone "because they're all broke," they told me. It was as simple as that.<br /><br />As one person who managed the jump from raising money for Wall Street to Miami crypto and then back again told me frankly: "Everyone knew SBF was a fraud, but Bernie Madoff kept the joke going for almost 20 years." The expectation, they said, was that SBF would be more adept at keeping the shell game going — he wasn't. Without the man CNBC's Jim Cramer called "the next JP Morgan," and with Washington bearing down on the industry, the crypto kings of Miami got scarce — fast.</p><p>And as soon as FTX fell, <a href="https://www.businessinsider.com/whining-from-crypto-company-executives-coinbase-has-got-to-stop-2021-9">the cold winds of regulation</a> began sweeping into Miami from Washington, DC. "Sweetie, regulation means less opportunity," the former crypto fundraiser said. In interviews, leaders like Coinbase CEO Brian Armstrong will tell you that <a href="https://www.wsj.com/articles/coinbase-ceo-brian-armstrong-says-regulation-could-boost-usd-coin-usage-11670631712" target="_blank" rel="noopener">crypto welcomes regulation</a> because it can remove uncertainty and give participants clarity on the rules of the road. But this is more of a ruse: What Armstrong and his ilk want are <em>lax </em>regulations.</p><blockquote class="pullquote-wrapper pullquote-breakout"><q class="pullquote-quotation">It's smoke and mirrors. There's no real money here anymore.</q></blockquote><p>That is why crypto's current collapse of faith may be fatal. <a href="https://www.federalreserve.gov/newsevents/speech/barr20230309a.htm" target="_blank" rel="noopener">Regulators clearly think</a> crypto is too volatile for big banks to handle, which will limit its growth. As things are, the small banks that were servicing the industry are failing — like San Diego's <a href="https://markets.businessinsider.com/news/stocks/crypto-crash-silvergate-bank-shut-down-liquidate-stock-market-news-2023-3">Silvergate</a> — or flailing, like New York's Signature Bank, for <a href="https://www.federalreserve.gov/newsevents/pressreleases/files/bcreg20230223a1.pdf?campaign_id=4&amp;emc=edit_dk_20230309&amp;instance_id=87222&amp;nl=dealbook&amp;regi_id=175013815&amp;segment_id=127275&amp;te=1&amp;user_id=d4830efc1216f8bf655f76b5471abc6f" target="_blank" rel="noopener">lack of capital</a> as coin prices plummet. Securities and Exchange Commission Chair Gary Gensler seems to be leaning toward officially labeling crypto a security, which could kill the industry entirely by revealing that under its thin veneer of technological innovation, there is just plain, old gambling. Knowing this, the same people who were sipping cocktails in their cargo shorts and calling Miami home in 2021 are now <a href="https://www.politico.com/news/2023/02/26/europe-crypto-u-s-00084322" target="_blank" rel="noopener">threatening to move</a> their emptying empires overseas in 2023 — if they haven't left already. Gensler <a href="https://www.politico.com/news/2023/03/07/gensler-crypto-overseas-sec-00085909" target="_blank" rel="noopener">seems unmoved</a>.</p><p>"There were a lot of true believers in the Miami crypto scene. They wanted to drink the Kool-Aid," the fundraiser said. "The big boys like <a href="https://www.ft.com/content/0a1d5597-7145-4035-987b-ff033bba3d75" target="_blank" rel="noopener">Peter Thiel</a> all got out on top. The paupers just crumbled to nothing."</p><p>In January, I sat with a former crypto executive at the bar in South Beach's Eden Roc hotel. Miami was experiencing its normal winter rush of Wall Street conferences, and we were reading faces. The crypto exec wanted to see whether Wall Street's rank and file had figured out what they had figured out months before — that the beach party was over. "It's smoke and mirrors. There's no real money here anymore," the former crypto exec, a third-generation Wall Streeter, said. "It's all gone to Dubai and Singapore." There was fear on people's faces where two years ago there had been greed.</p><p>"You know who's rich in Miami?" the former crypto exec — now a naturalized Miami citizen — asked me. "The people who make windows for yachts."</p><p>They're right. The people who survive in the city, whatever the weather, are those who make a living supporting its glamorous lifestyle. They work in nightlife, hospitality, real estate, and anything that can provide the infrastructure for revelers' good time. Like so many speculators before them, the crypto kids came and went, barely leaving a mark in the sand. Some of the wealth that came into Miami over the past few years will stick. But just like in the wider market crash, much of it is gone forever. This is a routine the city has grown accustomed to. Nature is healing. After another tide of money rushed in and out, Miami remains sun-soaked and unbothered but always keeping one eye out for the next shift in the wind.</p><hr /><p><em><a href="https://www.businessinsider.com/author/linette-lopez" rel="">Linette Lopez</a> is a senior correspondent at Insider.</em></p>

Miami spent years partying on a crypto-fueled high. I went to check out the brutal comedown.

<ul class="summary-list"><li>One longtime <keyword id="14072655" type="UNKNOWN" weightage="60" keywordseo="hamptons" source="Orion">Hamptons</keyword> man went from living large to living in the woods for two years.</li><li>Thomas worked for some of New York's richest residents and blew his money on parties and travel.  </li></ul><p><em>In this </em><em><a href="https://slack-redir.net/link?url=https%3A%2F%2Fwww.insider.com%2Fcategory%2Fas-told-to" target="_blank" rel="noopener noreferrer">As Told To</a></em><em>, Insider's series of edited conversations about unique experiences, Doree Lewak talks to Thomas, 51, who spent more than ten years working as a concierge for some of the Hampton's wealthiest residents before finding himself <keyword id="12096785" type="UNKNOWN" weightage="60" keywordseo="homeless" source="Orion">homeless</keyword> and living in the woods when the work fell off and he burned through all his money. He asked to remain anonymous in order to speak frankly.</em></p><p><em>This transcript has been edited for clarity.</em></p><p>As I was feasting on filet mignon and sipping champagne with Saudi royalty at the famous Topping Rose House in the Hamptons, I felt like I was on top of the world.  </p><p>When I first came out to the Hamptons 25 years ago, a wealthy enclave about 100 miles from New York City, life was good. I was 25 and worked at the vineyards for years before becoming a personal concierge to the 1%. I attended to the whims of royals, oil tycoons, and hotel moguls. I was the guy they used to escape life for a little bit.</p><p>The Hamptons is the nexus of everything — money, women, drugs, sex. (Even though I've been asked a hundred times, I never procured drugs for anyone. I would never be a drug dealer and stayed away from drugs myself.)</p><p>I'd laze at <a href="https://www.businessinsider.com/chateau-marmont-los-angeles-hotel-private-club-2020-7">Andre Balazs's</a> swanky Sunset Beach hotel or at an event that's $30,000 a table just for fun. The moment I showed up at an exclusive event, people at the door would say, "Oh, Thomas is here." I wasn't on the list, and I didn't have to be — that's how connected I was. </p><p>Doors opened for me everywhere, and I rode this high, staying at clients' multi-million dollar mansions. It's a world people can only dream of.</p><p>I would meet wealthy, divorced women who would ride along with it, enjoying the lavish <keyword id="11893304" type="UNKNOWN" weightage="100" keywordseo="lifestyle" source="Orion">lifestyle</keyword>. But when they realized I wasn't one of "them," they soured.</p><p>After a while, you realize the difference between mingling with <keyword id="11921347" type="UNKNOWN" weightage="60" keywordseo="wealth" source="Orion">wealth</keyword> and actually being wealthy. </p><p>What I learned is that although I blended in very well — and could talk their talk — I was still an employee. Although I was in that world, I was also being hired — hired to entertain them during their limited time in the Hamptons to escape their own reality.</p><p>It's nice, but then I went back to my reality — emotional problems, drinking too much, and depression. They have their multi-million dollar summer houses, and I went back to my modest rental cottage. It's definitely a class divide.</p><p>When things were good, they were great. Some years, I would make $100,000 for four months of work in the summer; in other seasons it was $60,000. But after the summer, everything drops off. The rent was so high I couldn't afford anything. </p><p>In this business, I lost myself. It's a world that 99.99% of the population can't understand, a world people can only dream of. But you lose your soul. I found myself in a world that's so seductive, but when you're not a corrupt person, it fucks with your mentality and perception of things. I was lost in a world of decadence. </p><p>One client said, "You're the quintessential Peter Pan." But I wasn't. I had to grow up.</p><div type="image" title="Guests are partying at a club opening in East Hampton in 2009." height="2000" width="2666" msid="93038278" hostid="261" sizebytes="191342"></div><h2>I went from living in mansions to living in a 6-by-6 tent in the woods</h2><p>I had lost both my parents and lost what I felt was my emotional support system. When you're up high and you fall, it's hard. You can find yourself with nothing.</p><p>Eventually, my heart wasn't in the work I was doing, and clients noticed. People would say, "He's not as much fun." I was on my way down and falling apart. One low point was passing out drunk next to a swimming pool at a party, waking up grateful that nothing worse happened to me.</p><p>I had to go live a normal life for $20 an hour. There were odd jobs — as a manny, in carpentry, welding — but it wasn't close to the kind of money I was making before. I couldn't afford my cars, a Jaguar and an old Mercedes convertible, anymore. Now it was a bike or scooter with a basket for my stuff. </p><p>I'd blown all the money I made on hotels in New York City, trips to Europe, including Scotland to visit family, and taking friends out to expensive restaurants, where a five-person table can easily become an $800 bill. </p><p>The money ran out. There was no work in the winter here for what I do. After living in waterfront places in Sag Harbor when things were good, my $1,200 rent doubled to $2,400 in a booming real estate market that I couldn't afford. You go from living in nice cottages down the line to crashing in a friend's spare bed to couch surfing. </p><p>I ran out of options.</p><div type="image" title="Train tracks in Long Island surrounded by wilderness." height="2447" width="3263" msid="93038280" hostid="261" sizebytes="951434"></div><p>I bought a camouflage-colored tent from Kmart, and found a spot deep in the woods of East Hampton near the railroad tracks. (The animals steer clear because of the noise.) This became my new home for the next two years. </p><p>But this was not like my early 20s, backpacking through the Pyrenees with friends.</p><p>You had to have your story ready in case a cop came. I didn't know what was scarier: being caught by a cop or by someone I knew. I just kept thinking, "How am I going to get out of this?"</p><p>Sometimes, I would sleep in the woods one day and the next, some rich person who's in Miami for the season, would offer me their waterfront home in Southampton. I'd stay in the garage while the house was under construction and sign for packages. </p><p>But soon it was back to life in the woods in my 6-by-6 tent with my little wood-burning stove, eating 90-cent cans of beans from King Kullen.</p><div type="image" title="Hamptons beach montauk" height="3508" width="4677" msid="93038282" hostid="261" sizebytes="626354"></div><h2>You have to learn all the tricks to survive in the woods</h2><p>The $80 a month gym membership was essential — I showered, worked out, used the sauna and bathroom — before going back to sleep in the tent.</p><p>But it was more essential to know all the tricks not to come up on police radar.</p><p>You have to be deep — but not too deep — in the woods in case you need to get out to a main road. You don't want any cars to see you come out of the woods. You need to be invisible. If someone comes by and sees a guy with a knapsack, they'd see the tent and call the police.</p><p>Making fires in the woods is definitely off-limits. It would attract attention. But I managed to keep warm because the tent creates a lot of heat. </p><p>The summer heat was worse, and you had to get up early enough before the sun would bake you. </p><p>You cry yourself to sleep, thinking, "How did I get here? What did I do wrong?" Then you wake up in the morning, and it's a new day. You think it can change. You keep thinking there's a light at the end of the tunnel, taking side jobs for up to $250 a day in cash, but it's steady enough to get you out of the hole.</p><p>Sleeping on two yoga mats in a tent in the cold and heat takes a toll on you, mentally as well as physically.</p><p>You feel your body change when you sleep in the woods. There's no REM sleep — what if there's a dog or deer? Despite the urine-soaked tent to keep animals away, one time in the middle of the night a group of four or five deer smelled the food in the tent and encircled me. It scared the hell out of me. Your senses are heightened. You're never fully sleeping. </p><p>Still, I couldn't shake the fear that someone in the woods would find me and beat me up.</p><p>Slowly, the pieces started coming back together. I started feeling good about myself again. The work picked up and I got back on my feet. I plan upscale events now and live in a little cottage. I stay afloat. When money comes in now, I use it more wisely. I learned to be a lot more responsible.</p><p><a href="https://www.27east.com/southampton-press/community-housing-fund-will-be-on-the-ballot-in-southampton-town-board-vote-is-unanimous-1992702/">But people are struggling</a>. There are really no shelters out in the Hamptons, which is appalling considering these are the richest zip codes in the country.</p><p>After staying awake so many nights in the woods, you get clarity about what's important: Now, at age 51, I 100% have a deeper appreciation for life. Nothing is ever the end of the world.  </p><p>For people struggling, I say hang in there and go to people for support. You'll get out of it.</p><p><br /><br style="font-weight: 400;" /><br /></p><p><br style="font-weight: 400;" /><br style="font-weight: 400;" /><br /></p><p><br style="font-weight: 400;" /><br style="font-weight: 400;" /><br style="font-weight: 400;" /><br style="font-weight: 400;" /><br /></p>

I went from living and partying with some of the richest people in the Hamptons to homeless and sleeping in the woods just miles from my wealthy ex-clients' mansions

<ul class="summary-list"><li>For over half a century, <a href="https://www.businessinsider.com/category/cadillac">Cadillac</a> was the top-selling and most recognizable luxury car company in America</li><li>However, an influx of foreign competitors like Mercedes-Benz and BMW began challenging the iconic automaker's status, and saw its sales begin to plummet.</li><li>Now Cadillac sits far down on the list of best-selling premium brands in the US. But the answers to the company's problems may lie in the global market, <a href="https://www.businessinsider.com/gm-buick-cadillac-sedans-continue-in-china-2018-11">particularly in China</a>.</li><li><strong><a href="https://www.businessinsider.com/?hprecirc-bullet">Visit Business Insider's homepage for more stories.</a></strong></li></ul><p><em>Following is a transcript of the video.</em></p><p><strong>Irene Kim: </strong>Owning a Cadillac in America synonymous with success and achievement. The company dominated the market, outselling all luxury automakers in the US for decades. Just 40 years ago, nearly one-third of all luxury cars sold in the US were Cadillacs. Now? Less than 7% of luxury cars purchased by Americans are Cadillacs, and the company is struggling to keep up with competitors it once outsold. So, what happened?</p><p>Cadillac got its start in 1902. It was actually formed from what was left of the Henry Ford Company after the departure of Henry Ford following disputes with his investors. Engineer Henry M. Leland was brought on to appraise the company's factory in order to sell it but saw instead potential. Leland chose to reorganize the company as Cadillac Automobile Company, naming it after French explorer Antoine de la Mothe Cadillac, the founder of Detroit, which was America's automotive hub as well as the home of the company. At face value, Cadillac's cars seemed almost identical to those the company produced under Ford. But they quickly distinguished themselves and gained a reputation for being better made and more reliable. In 1909, the company was purchased by up and coming conglomerate General Motors and officially named as its most prestigious division.</p><p>Over the next few decades, Cadillac set huge milestones in the auto industry, including the first passenger car with a fully enclosed cabin. Perhaps most impressive was the development of the first electronic self-starter. Up to that point, starting a car required the awkward and strenuous task of cranking up the engine. With some help from inventor Charles Kettering, Cadillac simplified it to just the push of a button. Breakthroughs like this inspired the company to adopt its iconic slogan: "Cadillac: Standard of the World.</p><p>Fast-forward to 1927. Cadillac established the concept of a "luxury car" with its LaSalle convertible coupe. Before the LaSalle, cars were strictly created based on their engineering needs. With this new car, it was the first time a company called in a designer rather than an engineer for the job. Designed by car stylist Harley Earl to be lavish and eye-catching, the LaSalle became a trendsetting automobile that once again highlighted Cadillac's high standards for carmaking.</p><p>Cadillac's success and technical progress continued through the 1930s. But then World War II hit, and the entire car industry slowed production in order to produce tanks and aircraft engines.</p><p>But that didn't stop the car brand. Cadillac introduced designs that came to both define the car industry and embody the prosperity of the "fabulous fifties" and 1960s. While the company received recognition for its continued engineering developments, it was Cadillac's iconic tail fins that became a staple feature of all luxury automobiles. Not to mention its cars' enormous dimensions and Dagmar bumpers, nicknamed after the voluptuous TV star.</p><p>At the height of its popularity, Cadillac was selling over five times that of rival Lincoln, and in 1968 managed to sell over 200,000 vehicles for the year.</p><p>But Cadillac was more than just America's most stylish and top-selling premium car brand. Through General Motors' aggressive marketing, driving a Cadillac became a status symbol in America, to everyone from celebrities and professional athletes to presidents.</p><p><strong>Matt DeBord: </strong>It was the pinnacle of achievement in American society at that point. They also has these zany names like Fleetwood, Eldorado. They came up with these crazy names drawn from the most pretentious notions around European heraldic badges and stuff like that. And the whole idea was to sell people on the notion that they had really made it and they were gonna ascend to some kind of premium status in American society</p><p><strong>Irene: </strong>At the start of the 1970s, Cadillac remained a dominating force in the luxury car market, as the idea that "bigger is better" still rang true with buyers. However, as the economy declined and a widespread oil crisis spread, owning giant, gas-guzzling sedans became far less convenient - and far more expensive. But more than anything, the rise of imported cars gave Cadillac some serious competition, and the brand started to lose ground as the standard of excellence in America.</p><p><strong>Matt: </strong>When the Europeans showed up, the Germans in particular, with their snazzy little sport sedans, it was a revelation, and a lot of people who liked to drive gravitated toward those. And they were gonna go for Porsches, and BMWs, and Mercedes and that sort of thing. And they also started to think about European automobiles as just being better, and being superior.</p><p>And then the Japanese arrived with their little fuel-sipping machines that are really quite reliable relative to American cars. And so people started looking at these and saying, "Well it's a better car, it gets better fuel economy. Why am I driving around in this giant Cadillac?</p><p><strong>Irene: </strong>Although the 1980s started well enough for Cadillac, with sales continuing to increase, the company responded poorly to this rise of imports. To compete with all the new compact foreign automobiles, the company began downsizing its entire lineup to create a team of smaller, fuel-efficient cars. But its cars quickly became indistinguishable not only from each other, but from General Motors' other brands as well.</p><p>And as the company hastily pushed out these smaller cars to try and match the influx of luxury imports, Cadillac encountered a number of failures, the prime example being the Cimarron, the smallest car Cadillac had ever produced to that point. It sold so poorly that it was axed from their lineup by 1988, just six years after its launch.</p><p><strong>Matt: </strong>It's a Chevy with a Cadillac badge slapped on it. It looks like a Chevy. It's just a ghastly little car. If you wanted a Chevy, it was OK. But if you wanted a Cadillac, you looked at it like, "What the F is this, basically?" So it was just an embarassment. But it was an attempt by General Motors and Cadillac to keep the brand going in a much more competitive environment where some of the value proposition of Cadillac had gone away.</p><p><strong>Irene: </strong>Consumers recognized the decline in quality of Cadillac's cars, and it reflected in the company's sales. Cadillac's share of the U.S. luxury car market dropped from 31% in 1980 to just 22% in 1990. As Cadillac fell, its competitor Lincoln reaped the benefits. Lincoln's share doubled during the course of the decade to 20%. And in 1998, for the first time in 59 years, Lincoln outsold Cadillac.</p><p>By the 1990s, Cadillac lost any appeal it had with the younger market. The running joke became that all Cadillac owners were "somewhere between 60 and death." America's luxury car market was now heavily dominated by Mercedes, with Toyota's newly introduced Lexus brand close behind, followed by BMW, whose sales were quickly rising. But in 1999, the introduction of what would become one of Cadillac's most iconic vehicles would prevent a total collapse and help revamp the brand.</p><p>The 1999 Escalade was Cadillac's answer to the full-size SUV boom, and its response to the success of Lincoln's Navigator. The Escalade not only performed well sales-wise, it became a pop-culture icon in itself, making its way into movies and music videos, as well as becoming a popular choice among celebrity car buyers.</p><p>Things were starting to look up. Cadillac saw a bump in sales, a rise in popularity with the youth market thanks to the Escalade, and somehow survived General Motors' 2009 bankruptcy that saw multiple brands dissolve.</p><p>Unfortunately, the 21st century has not been completely kind to the once glorious name of Cadillac. While Cadillac's array of modern sport sedans and performance models has been well received by reviewers and the media, the numbers say otherwise. In 2018, the brand saw its US luxury car market share dip to a lowly 7%, selling only 154,702 cars that year, which put it behind even Acura. And its sales among American buyers only continue to plummet.</p><p>But why? How does a company that continues to churn out high-quality cars with top-level technology, like its self-driving Super Cruise system, continue to dip in sales? Well, Cadillac took a long time to join the crossover SUV craze - something that now makes up 60% of luxury car sales in the US.</p><p>But despite its problems in the US, the company may have found its answers in the global market - particularly in China.</p><p><strong>Matt: </strong>The US market is at peak levels right now as far as sales. So there's not a whole lot of additional room for growth. And you say, "Wait a minute. Where are we gonna see all the growth in the future?" And General Motors looks across the ocean and sees China, whose market is already much larger than the US market, in excess of 20 million in annual sales and could probably go to 30 million, or 40 million eventually. People don't have a lot of cars in China. And General Motors is looking at this situation and saying, "People in China are going to get richer in the future, and they're going to want to identify their status as a wealthy person with an automobile. Why shouldn't that be a Cadillac?" So they're just thinking, "Well, why don't we put Cadillac in there?" Well, they put Cadillac in there 10 years ago, and it's been extremely impressive.</p><p><strong>Irene: </strong>Between 2016 and 2017, Cadillac sales in China exploded by over 50%, leading Cadillac to record it's second highest global sales mark in the company's 115-year history. The company already has plans to expand its network of dealers to 500 in China by 2025.</p><p><strong>Matt: </strong>We look at a rise in Cadillac, we look at a fall in Cadillac, and the fall may be something that can't be arrested in the market where the brand was created. I mean it's one of the original General Motors brands. But they could create a brand that means something in another part of the world.</p>

The rise and fall of Cadillac

<ul class="summary-list"><li>I tested a $24,855 <a href="https://www.businessinsider.com/category/toyota">Toyota</a> Corolla Hybrid, from the 2021 model year — the US market has been denied this vehicle until recently.</li><li>Like the non-hybrid Corolla, the Hybrid version is just a few notches above basic <keyword id="34991" type="ORGANIZATION" weightage="100" keywordseo="transportation">transportation</keyword>, and the LE trim level (the only one available) has low-key styling and a bland interior.</li><li>But the Corolla Hybrid has <keyword id="6374528" type="ORGANIZATION" weightage="60" keywordseo="toyota">Toyota</keyword>'s proven technology under the hood. The hybrid drivetrain is based on engineering that's stood the test of time for two decades.</li><li>I own two Toyota <keyword id="6557668" type="UNKNOWN" weightage="60" keywordseo="hybrids">hybrids</keyword>, so I'm a tad biased, but the Corolla Hybrid makes a strong case for its inclusion in the unpopular sedan segment.</li></ul><p>It's almost impossible to argue, ethically, against the 2021 <keyword id="382782" type="ORGANIZATION" weightage="60" keywordseo="Toyota-Corolla">Toyota Corolla</keyword> Hybrid. An affordable, comfortable sedan with the king of reliability behind it, a bulletproof hybrid drivetrain steadily improved since its introduction two decades ago, and a fuel-economy rating of 52 mpg combined, all for a $23,400 base price? </p><p>Sold.</p><p>Don't care for four doors? Fine. Favor SUVs? Sure, OK. Want more rear legroom or a larger trunk? Gotcha.</p><p>You can obtain all those things, but that doesn't mean the Corolla Hybrid is losing any arguments. While the Honda Insight is predictably <a href="https://www.businessinsider.com/honda-insight-hybrid-rewview-pictures-2018-12">more fun to drive and slightly more stoutly built</a>, and the Hyundai Ioniq Hybrid is priced nice ($23,200) and posts higher MPGs (58 combined), the Corolla joins the legendary crown nameplate with an equally legendary hybrid technology.</p><p>Simply put, the Corolla Hybrid is a majestic example of automotive engineering; all I could think about while driving it for a week was the privilege of experiencing this much ingenuity in one place. Few machines in human history embody the Japanese concept of "kaizen" — continuous improvement — more fully.</p><h2>Good price on the sticker, great technology under the hood</h2><p>My test car arrived in our suburban New Jersey test center wearing a handsome "Barcelona Red Metallic" paint job and with a stern test on its agenda: a pair of 200-mile-plus round-trips — a 412-mile challenge, in total. Would a single tank of gas be enough? On paper, yes, since the car is rated at close to 600 miles of range.</p><p>In practice, with some mundane everyday motoring also in the calculations, I'd have to find out.</p><div type="image" title="Toyota Corolla XSE" height="1500" width="2000" msid="78147818" hostid="261"></div><p>The Corolla Hybrid comes in only one trim, the LE, which starts at $23,400 and is well equipped. This tester only had one $500 option, blind-spot monitoring, plus a $955 delivery fee to bring the sticker to $24,855. </p><p>A while back, I sampled the non-hybrid Corolla, a $29,189 XSE trim. As usual, the car made an impression.</p><p>"What's impressive is how little time Toyota is spending resting on its laurels with the vehicle," <a href="https://www.businessinsider.com/toyota-corolla-xse-review-photos-features-verdict-2019-9">I wrote in my review</a>.</p><p>"It definitely could; Corolla sales have been declining relative to RAV4 crossovers. They remain strong, but since 2007, the sales total for the sedan has slipped in the US by 100,000 units. If Toyota wanted to, it could phone the Corolla in a bit more. It most definitely hasn't."</p><div type="image" title="Gen 1 Toyota Corolla 1969-1970" height="1358" width="2000" msid="78147821" hostid="261"></div><p>Toyota has been selling the Corolla in the US since 1968, which means it's been around almost as long as the Ford Mustang. The Corolla's most recent US sales peak was 2006, when <a href="https://www.autonews.com/manufacturing/toyota-opts-build-crossover-instead-corolla-ala-jv-plant#:~:text=Corolla%20sales%20peaked%20in%202006,the%20Automotive%20News%20Data%20Center.">nearly 390,000</a> units were sold. <a href="https://pressroom.toyota.com/toyota-motor-north-america-reports-december-2019-year-end-sales/">Last year, that number was a still-impressive 304,850</a>.</p><p>When I was fresh out of college in the late 1980s and early 1990s, one could assume that Corolla ownership was inevitable, at some point. It was that kind of grown-up-enough, entry-level four-door, now displaced by the RAV4 compact crossover SUV. I didn't wind up with a Corolla in my driveway, but my mother leased one for a few years, proving that the value proposition wasn't limited to young singles.</p><div type="image" title="DeBord Prius" height="960" width="1280" msid="78147822" hostid="261"></div><p>I do own a 2011 Toyota Pius and a 2017 RAV4 Hybrid, and to be succinct, I'm a huge fan of the high-MPG, low-emission drivetrain, which has performed flawlessly in both my vehicles.</p><p>The design has been around since the late-1990s introduction of the Prius Japan. It's a masterpiece of technology, and it's far from uncomplicated. It a nutshell, it solves several problems at once, improving the notorious inefficiency of the internal-combustion engine and reducing harmful greenhouse emissions while also extracting more range from every gallon of energy-dense gasoline. </p><p>But that isn't the only perk. The Corolla's drivetrain, if the battery has enough charge, can creep along at low speeds on electric power alone. The car also has regenerative braking, which restores the battery while driving.</p><h2>Not a high-performance machine, but impressive in other ways</h2><div type="image" title="Toyota Corolla Hybrid" height="1500" width="2000" msid="78147825" hostid="261"></div><p>The basis of the Corolla Hybrid is a 1.8-liter, four-cylinder engine; when coupled with the duo of electric motors and their 1.3-kilowatt-hour battery pack, it cranks out 121 horsepower with 105 pound-feet of torque.</p><p>It's not much, but you don't buy a modestly scaled Toyota hybrid to indulge a need for speed. Your motto isn't "I can't drive 55!" but "I want more than 50 mpg!" </p><p>The power, such as it is, is sent to the front wheels through a continuously-variable transmission. Love or hate CVTs, the gearless setup supports the fuel economy and enables the entire system to perform its intricate industrial choreography.</p><div type="image" title="Toyota Corolla Hybrid" height="1500" width="2000" msid="78147828" hostid="261"></div><p>There are plenty of CVT critics out there, but I've taken out car loans to buy two CVT-equipped vehicles and they don't bother me at all — and I get to drive cars that have four times the Corolla Hybrid's power all the time, with transmissions borrowed from competitive auto racing.</p><p>The Corolla Hybrid has four drive modes: Normal, Eco, Sport, and EV. The last is only useful for bumper-to-bumper traffic or piddling around parking lots (still, it's lovely to spare the atmosphere another few grams of CO2).</p><p>Eco is fine for almost everything, but Normal is the default and many of my fellow Toyota hybrid owners have told me they prefer it because it preserves more of the drivetrain's limited torque than Eco. Sport brings the inline-four into the picture in a more robust way, and I tended to toggle between Eco and Sport while I tested the Corolla.</p><div type="image" title="Toyota Corolla Hybrid" height="1282" width="1709" msid="78147832" hostid="261"></div><p>Is the Corolla a good-looking car? More than a few astute critics of car design have declared, "No." And by that, I mean they've decided the Corolla is a sad stub of a vehicle — about as far from a Jaguar E-Type as it's possible to get and still have four wheels. </p><p>I actually like the Corolla's design, although I'd be lying if I said I was nuts about it. It looks deeply OK, and more importantly, it looks deeply Toyota.</p><p>Corollas have also been more boring in the past, and the hybrid version did provide an aesthetic alternative to the Prius, which has long been the punchline to too many jokes. </p><div type="image" title="Toyota Corolla Hybrid" height="1067" width="1423" msid="78147835" hostid="261"></div><p>The bottom line is that the Corolla Hybrid, like the Honda Insight, wants to give you a hybrid sedan styled as a familiar example of the genre. The premise is <em>prima facie</em> conservative, with form not entirely following function but beauty definitely not following it.</p><p>You aren't going to find anything to complain about with the Corolla's build quality. It might not be quite a tight as the Insight (or a Civic), but that's typical when considered the two biggest Japanese brands in the US market, each renowned for its commitment to quality. The Corolla Hybrid presents a pleasing shape, with no obvious flaws or evidence of corners cut.</p><h2>Now for the bad news: only a single trim level, and it isn't fancy</h2><div type="image" title="Toyota Corolla Hybrid" height="690" width="920" msid="78147837" hostid="261"></div><p>Headlights and taillights are LED units and in literally hundreds of miles of nighttime driving, the headlamps lit the path before me in a manner I would describe as "professional." They weren't as stunning as the lights on a Mercedes or Audi, but for the segment, they won't let you down. And they have a nifty automatic high-beam feature that's helpful on dark country roads.</p><p>Exterior plastic trim is restrained in its use, as is chrome, and the 15-inch alloy wheels on my tester were an attractive if not stunning choice. If the Corolla has a controversial feature, it's the black maw of the grille, which does overwhelm the fascia and strike an oddly arrogant stance for a car that's meant to have broad appeal. </p><div type="image" title="Toyota Corolla Hybrid" height="1500" width="2000" msid="78147843" hostid="261"></div><p>The LE trim level isn't the highest for the Corolla, but because the Hybrid comes in that trim and that trim only, you have to make do with an interior that's crafted from what seems like a few cubic yards of recycled plastic.</p><p>My RAV4 has seats that are upholstered in a material I liken to neoprene, so I'm used to the vibe, but even in a fetching "Graphite" color scheme, one knows Toyota can do better. My Prius' interior, for instance, is tan leather and it's aging gracefully.</p><p>The positive here is that you can beat up an interior like this and not beat yourself up about it at the same time. These seats were conceived to be destroyed, and the absence of anything that resembles a material found in nature on the dashboard implies that this car is prepared for a life of duty and not angling to blow anybody's mind with its appointments.</p><div type="image" title="Toyota Corolla Hybrid" height="1503" width="2000" msid="78147849" hostid="261"></div><p>I used the Corolla Hybrid to haul around a decent number of loads during the course of a week, including not one but two acoustic guitar cases, testing the 13-cubic-foot trunk capacity and forcing me to drop the rear seats.</p><p>People who need to schlep around a lot of stuff aren't the target market for compact <keyword id="60426" type="PERSON" weightage="60" keywordseo="Sedans">sedans</keyword>, so I pushed the envelope. Otherwise, the Corolla Hybrid is perfectly adequate for the usual grocery runs or occasional trips to Home Depot or Target.</p><p>While it seats five, allegedly, it can handle four perfectly well — so long as the journey isn't too arduous. </p><div type="image" title="Toyota Corolla Hybrid" height="1500" width="2000" msid="78147853" hostid="261"></div><p>The best thing I can say about the Corolla Hybrid's interior is that it demands you don't think about it. A traditional Toyota value!</p><p>And for me, after plenty of test drives in sedans larded with real-wood trim, elegant brushed metal accents, and supple leather seating, getting back to the basics was somewhat refreshing.</p><div type="image" title="Toyota Corolla Hybrid" height="1500" width="2000" msid="78147857" hostid="261"></div><p>The Corolla Hybrid's infotainment system runs on an eight-inch touchscreen — supplemented by buttons and knobs — that is far, far from the auto industry's finest. </p><p>That said, it gets the job done. I was able to pair my phone through Bluetooth, connect devices via USB ports, tune in to SiriusXM satellite radio, and make use of the navigation setup. I could have fallen back on Apple CarPlay or Android Auto if I had to.</p><h2>Fuel-economy raised to engineering art</h2><div type="image" title="Toyota Corolla Hybrid" height="1503" width="2000" msid="78147859" hostid="261"></div><p>Ultimately, the Corolla Hybrid is an awesome piece of fuel-sipping basic transportation. As the owner of Toyota hybrids in both hatchback and crossover form, I can say that in my heart, there is certainly still a place for the sedan despite the market turning against the segment and toward SUVs.</p><p>Plus, the 53 mpg in the city and 52 mpg on the highway provoked a flutter in my chest whenever I gazed up the nearly stagnant fuel gauge. Two runs from the New Jersey 'burbs to the East End of Long Island, with many errands in between, and I still gave the car back with a quarter tank of gas. </p><p>These days, you can obtain great fuel economy even in non-hybrid cars. But hybridization reduces fill-ups and moves the cognitive needle, as far as ownership of this type of vehicle goes. And after testing a car as thrifty as this, I always ask myself why every single living person with a clean license isn't driving one. </p><p>Well, I've put my own money where my mouth is, but other folks can make up their own minds. The Toyota Corolla Hybrid is anything but luxurious, but it drives ... fine. True, there's no power — the 0-to-60-mph time gets you to 10 Mississippi, and there was no drawl in my counting — but I held my own on the Long Island Expressway once I got up to speed, and the ride was neither jangly when driving straight ahead nor jittery when cornering. </p><p>The Corolla Hybrid is thus a darn good little car with a legacy of satisfied customers, and a whole package centered on hybrid technology that's in the automotive hall of fame. Cheap to buy, cheap to operate, and it could last for 20 years. I'd say that merits a test drive.</p>

The $24,000 Toyota Corolla Hybrid is a thrifty fuel saver that'll leave you wondering why everyone isn't driving it

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5a861bcdd030725b038b476d-1800/tesla model 3-32.jpg" border="0" alt="Tesla Model 3" data-mce-source="Hollis Johnson/Business Insider" /><p class="source"><span>Hollis Johnson/Business Insider</span></p><p class="caption">Great car, small market.</p></div><p></p></div></div></p><ul><li><strong><a href="https://www.businessinsider.com/category/tesla">Tesla</a> critics and short-sellers have offered dire warnings about impending electric-car competition coming for the automaker.</strong></li><li><strong>But globally, EV sales amount to only about 1% of sales - there's no meaningful basis for competition at that level.</strong></li><li><strong>That doesn't mean that EVs are a bad bet - over time, the market for them should grow and at some distant future point, become very competitive, and <a href="https://markets.businessinsider.com/stocks/tsla-stock">Tesla</a> could be a leader.</strong></li></ul><hr /><p>Electric cars have been a topic of frenzied discussion for almost a decade. The chatter has greatly intensified as Tesla has grown and at times become the most valuable US automaker by market capitalization, beating out the Detroit Big Three: General Motors, Ford, and Fiat Chrysler Automobiles.</p><p>True, there are quite a few more electric vehicles coming to market in the next few years than have been in the market for the past 10. This has led Tesla naysayers - the likes of Jim Chanos, who has built up an oft-proclaimed short position in Tesla shares - to adopt a tough-minded thesis about CEO Elon Musk's carmaker.</p><p>Tesla is in trouble, the argument goes, <a href="https://www.cnbc.com/video/2018/08/07/tesla-short-seller-chanos.html">because the competition is coming</a>. </p><p>Nice soundbite, but totally misguided at best and disinformation at worst. </p><p>The global auto market is enormous. In the US, about 17 million new vehicles were sold in 2017. In China, the market could hit 40 million in annual sales at some future point, if the most optimistic predictions are correct. By the end of 2018, close to 100 million so-called light vehicles - cars and trucks designed to carry passengers and moderate amounts of cargo - will get sold.</p><p>Almost all of them will be powered by petroleum, either gasoline or diesel. How many is almost all? That would be 99%. EV sales should come in at around 1%.</p><p>This is the "market" that's about to be beset with Tesla-undermining competition. Which is to say that it isn't a market at all. It's an experiment. </p><h2>We still live in an all-gas world</h2><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/53f218ad69beddad371c5fb7-1355/screen shot 2014-08-18 at 111503 am.png" border="0" alt="jim chanos" data-mce-source="Reuters" /><p class="source"><span>Reuters</span></p><p class="caption">Tesla short seller Jim Chanos.</p></div><p></p></div></div></p><p>Over time, it will become less of an experiment as EV sales pick up speed. But let's be honest: if the global EV market doubles, the gas-powered market will still by 98% of everything. If EV sales notch gains of ten times their current levels, the internal-combustion engine will be 90%.</p><p>This doesn't mean that Tesla can't have a great business with its slice of a small pie; if it records double-digit profits selling mainly luxury electric cars to well-heeled early adopters, there won't be anything to argue about. </p><p>But as for the rest of industry, big automakers aren't so much looking to take on Tesla as they are aiming to simply be in the EV space. Tesla has served the extremely useful purpose of validating a market of sorts for EVs, and the Porsches and Jaguars and Audis and Mercedes of the world don't want to fall too far behind.</p><p>These automakers also need to add zero-emission vehicles to their lineups to meet more stringent global-emissions and fuel-efficiency requirements. That's why they're willing to run their EV portfolios at a loss. If you look at an company such as FCA - whose former, late CEO, Sergio Marchionne, famously lamented losing over $10,000 on every electric Fiat 500 he sold - you see an automaker that lives on full-size pickups and SUVs, hardly the most fuel-sipping products. </p><p>But those pickups and SUVs are insanely profitable. To keep that business all good, EVs and gas-electric hybrids have to be sold. </p><p>I realize this is a depressing reality. But it isn't helpful to deny it. </p><p>Nor is it sensible to accept the notion of a coming competitive assault on Tesla as a dire prognostication. At its current rate of production, Tesla can reasonably expect to deliver 200,000 vehicles per year globally as a baseline. New factories would obviously increase that two or three times, again at a baseline, but still far fewer vehicles than GM sells annually.</p><h2>Electric cars are a science project</h2><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/55c926f6dd0895c0788b460f-1200/456967714-1.jpg" border="0" alt="Tesla D Getty 2" data-mce-source="Kevork Djansezian/Getty Images" /><p class="source"><span>Kevork Djansezian/Getty Images</span></p><p class="caption">Tesla CEO Elon Musk.</p></div><p></p></div></div></p><p>This isn't a market that in 2018 is worth spending serious money to compete in. Pickups in the US are such a market. So are smaller hatchbacks in Europe. Increasingly, compact crossover SUVs are becoming a ferociously competitive market.</p><p>EVs are a science project. That's why Tesla occupies outsized mindshare: it's selling so many EVs relative to the size of the market that it typically compares its vehicles, erroneously, to gas-powered cars, as if consumers are somehow cross-shopping various propulsion technologies. They aren't. There are just a lot of people with resources out there who want a Tesla. The brand is powerful. And the cars are pretty cool.</p><p>As for the dozens of other car companies on Earth, it's unclear whether they'd really be making EVs at all if there weren't some edge-case justifications to take the plunge and the other 99% of the auto market wasn't doing so well (the US has been running at a record or near-record sales pace for three straight years). On top of that, most people I've talked to about competition and Tesla aren't worried about it. They think the next 10 years will present an all-boats-rising-on-a-tide-of-improving-sales scenario.</p><p>An EV is still just a vehicle, and until some level of scale arrives - if it ever does - margins aren't very appealing. Or they're nonexistent. Or simply, you know, negative. Carmakers know all about the economies of making cars. If you build small ones, you make less money. If you build cars nobody wants, you lose money. If you build successful cars, you can post profits, but they can range widely. And at the low end, we're talking single digits.</p><h2>New lines of business that may or may not be electric</h2><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5b183b621ae66220008b4ca7-2000/tkk6312.jpg" border="0" alt="Waymo Italy Small" data-mce-source="Waymo" /><p class="source"><span>Waymo</span></p><p class="caption">Waymo could be worth $175 billion.</p></div><p></p></div></div></p><p>This is why big car companies have started to create new lines of business in mobility or <keyword id="34991" type="ORGANIZATION" weightage="60" keywordseo="transportation">transportation</keyword> as a service. GM has its Cruise self-driving division, which it plans to conjoin with ride-hailing; a recent joint investment with Japan's SoftBank valued the business at $11.5 billion, roughly a fifth of GM's market cap. </p><p>Waymo, formerly the Google Car Project, wants to follow a similar path. Morgan Stanley thinks it could be worth a staggering $175 billion.</p><p>These services, as former Ford CEO Mark Fields often argued, could yield 20-30% margins. Right now, Ford is hoping to hit 10%, best-case, with its core auto business.</p><p><span>Sherif Marakby, </span>CEO of Ford's standalone<span> autonomous vehicle division, Ford AV LLC, recently told me that Ford is intentionally not tying itself to EVs for some of its prospective new enterprises because it doesn't want to have to take vehicles off the road for extended recharging times. </span></p><p><span>This isn't to suggest that EVs are at threat of being also-rans or that the larger project - Tesla's project - of eliminating tailpipe emissions should be abandoned. Electric cars have lost out to gas-powered vehicles for over a century, but since about 2010 they appear to have entered a tipping-point period where their small market is stable and sustainable. </span></p><p><span>If we look forward another century, it's a fair bet that EVs will constitute a much larger market and unless the entire present structure of global car brands collapses and is replaced by entirely new players operating from monopoly or near-monopoly bases, then that future market would turn out to quite competitive indeed.</span></p><p><span>That's when we can start talking seriously about how much competition Tesla and everybody else is facing - a long, long time from now.</span></p><p class="tagline">Get the latest Tesla stock price<a href="http://markets.businessinsider.com/stock/TSLA-Quote"> <strong>here.</strong></a></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="https://www.businessinsider.com/elon-musk-twitter-thai-cave-sleeping-factory-2018-7">What's going on with Elon Musk</a></h3>        <div>            <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/8WpxQ5zw-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script>        </div>    </div>

Tesla isn't facing a wave of competition because there isn't any competition in the electric-car market

Made Men: A photo tour of the most notorious sites of New York Mafia history - and what they look like now

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/58ffc35c7522ca68008b657f-2000/img3780.jpg" alt="Lexus ES300h" data-mce-source="Benjamin Zhang/Business Insider"><p class="source"><span>Benjamin Zhang/Business Insider</span></p><p class="caption">Lexus ES300h.</p></img></div><p></p></div></div></p><p>Over the past decade, Lexus has become an industry leader in luxury hybrids.</p><p>The brand's Hybrid Drive (shared with parent company Toyota) is one of the most popular and effective systems of its type on the market today.</p><p>Two of the most visible cars to feature the parallel hybrid system, which sees a gasoline powered engine and an electric motor work in unison to provide propulsion, are the compact CT200h and the mid-size ES300h.</p><p>Earlier this year, Business Insider had the chance to check out the <a href="http://www.businessinsider.com/lexus-ct200h-review-2017-1" target="_blank">compact CT200h</a>.</p><p>It was a car that divided Business Insider's <keyword id="34991" type="ORGANIZATION" weightage="60" keywordseo="transportation">transportation</keyword> team.</p><p>While my colleague Matt DeBord expressed his admiration for the fuel-sipping hybrid, I found the 134 horsepower, Prius-based CT and its continuously variable transmission to be unrefined, underpowered, and completely underwhelming.</p><p>However, my well-documented disdain for the CT200h does not mean I shy away from Lexus' hybrids on spec. In fact, one of my favorite cars on sale today is a Lexus hybrid - the ES300h. Recently, Business Insider had the chance to evaluate a blue Lexus ES300h hybrid on the streets of suburban Atlanta. The 2017 ES300h starts at $41,820, but our test car came in at a tick over $50,000.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/586ea4c2ee14b637588b64d8-2222/2016lexusct200h001a971e1885552f6aa5a547f387d2687feecd2cb6f.jpg" alt="Lexus CT200h" data-mce-source="Lexus"><p class="source"><span>Lexus</span></p><p class="caption">Lexus CT200h.</p></img></div><p></p></div></div>In 1989, Lexus arrived in the US and took the auto industry by storm with a lineup of cars promising European luxury and Japanese reliability at a much more affordable price point.</p><p>Since then, the ES has been a staple in the Lexus lineup.</p><p>In that regard, the ES300h is a throwback to the fundamentals upon which the company was built. It's comfortable and supremely quiet while exuding an air of solidity that befits a vehicle of a much higher price point.</p><p>Under the hood is a 2.4-liter, inline-four-cylinder gasoline engine paired with an electric drive unit to produce a total of 200 system horsepower. Those horses are routed to the front wheels through an electronically controlled CVT that forgoes traditional gears in favor of varying gear ratios tailored to the needs of the engine.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5902228d2f6ae489248b4790-1562/img3868.jpg" alt="Lexus Hybrid Drive ES300h" data-mce-source="Benjamin Zhang/Business Insider"><p class="source"><span>Benjamin Zhang/Business Insider</span></p><p class="caption">Lexus Hybrid Drive.</p></img></div><p></p></div></div>In the ES, this version of the Lexus Hybrid Drive offers a truly refined motoring experience. Even under hard acceleration, the engine remains relatively subdued and creates a far less intrusive racket than the CT. Under normal conditions, the hybrid drive system is eager to please and delivers acceleration figures on par with most mid-size family sedans. According to Lexus, the ES300h is capable of hitting 60 mph in 8.1 seconds. At highway speeds, the Lexus cruises effortlessly with its suspension successfully smoothing out any and all imperfections in the road.</p><p>Being a hybrid, the ES300h also delivers more than a respectable fuel economy for a full-fledged luxury sedan. During my week with the ES, Business Insider's test car managed around 32 mpg of fuel economy in combined city and highway driving. This falls short of the 40 mpg highway/39 mpg city/40 mpg combined fuel economy claimed by Lexus. However, much of this discrepancy can be attributed to my enthusiastic diving style and the Georgia heat that required the car's A/C to work overtime.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/590223a02f6ae479018b4a66-1810/img3777.jpg" alt="Lexus ES300h" data-mce-source="Benjamin Zhang/Business Insider"><p class="source"><span>Benjamin Zhang/Business Insider</span></p></img></div><p></p></div></div>Styling-wise, the ES feels restrained when compared to the bold lines and striking features that adorn its Lexus siblings. The sixth generation ES, which debuted for the 2013 model year, received a mid-cycle refresh in 2016 that included an update to the company's signature Spindle Grille. On the ES, the more fluid look of the Spindle gives the relatively low-key hybrid sedan a stylish look that stands out from the pack.</p><p>But, it is inside the cabin where the ES really shines. </p><p>The interior features expertly integrated leather with wood and chrome accents, giving the car an elegant and modern look. In fact, virtually every surface features quality leather or rich wood veneer. Heck, even the plastics feel expensive. You can tell Lexus spent a considerable amount of time and money to make sure the ES is a truly pleasant place to spend time. As result, the interior of ES feels like it's been transplanted from a much more expensive car.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/590222b72f6ae479018b4a5f-2000/img3827.jpg" alt="Lexus ES300h" data-mce-source="Benjamin Zhang/Business Insider"><p class="source"><span>Benjamin Zhang/Business Insider</span></p></img></div><p></p></div></div>Alas, the ES isn't perfect. Unfortunately for Lexus, where the ES falls short is also where its entire lineup falls short - the infotainment system. The infotainment system on our test car was infuriatingly difficult the use. The rotary "puck" input system is inaccurate when the car is stationary and borderline dangerous at speed. In addition, the user interface is convoluted and the voice controls struggles to understand basic accent-free American English.</p><p>The Lexus system is a frustration in comparison to its top-tier luxury rivals, Mercedes-Benz and BMW, and Audi's system blows it away.</p><p>However, in my opinion, one shortcoming - albeit significant - doesn't spoil the car. For me the Lexus ES300h represents everything that a Lexus should be - refined, luxurious, and well made. So if you're looking for a $42,000 luxury hybrid sedan, look no further than the Lexus ES300h.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/toyotas-new-ft-4x-concept-millennials-camping-hacks-2017-4">Toyota's new concept for millennials has built-in camping hacks</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="o3OG5yYTE6U78nXZ6yCmF1_58kAkG3nj" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'o3OG5yYTE6U78nXZ6yCmF1_58kAkG3nj',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

This luxury hybrid represents everything a Lexus should be

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/57accc11db5ce9ad018b62e2-1632/img_5788.jpg" alt="Porsche 911 Targa" data-mce-source="Matthew DeBord/BI" /><p class="source"><span>Matthew DeBord/BI</span></p><p class="caption">Want.</p></div><p></p></div></div>If you want to, you can talk yourself out of a lot of things in life. But it doesn't last - you always come back to fundamentals.</p><p>Take the Porsche 911. I last drove one about two years ago, a 911 4S Cabriolet, and it was all it should have been, a "drive for your life car" that serves up impeccable performance with a German pedigree. It showed no indications of letting me down behind the wheel.</p><p>But then came the siren call of other machines. Ferraris, Lamborghinis, McLarens. Cadillac Vs and BMW Ms and Mercedes AMGs. Audi RS. A Jaguar F-Type. A couple of Aston Martins. Even a <a href="http://www.businessinsider.com/the-mini-john-cooper-works-is-the-scariest-car-ive-ever-driven-in-a-good-way-2016-7">mad little MINI John Cooper Works</a> and a <a href="http://www.businessinsider.com/alfa-romeo-4c-spider-review-mini-ferrari-2016-7">madder Alfa Romeo 4C</a>.</p><p>Most recently, a <a href="http://www.businessinsider.com/grand-sport-corvette-review-2016-9">Corvette Grand Sport that I concluded was the finest Vette I'd ever driven</a>.</p><p>I had gotten too far from the the 911. And then another one showed up.</p><p>The 911 is the current soul of Porsche. The sports car has been in continuous production since 1963 and after five decades, it represents the culmination of Teutonic problem solving - because as great as the 911 is, it's based on a funky basic design.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/57accc46ce38f288008b639c-1054/img_5779.jpg" alt="Porsche 911 Targa" data-mce-source="Matthew DeBord/BI" /><p class="source"><span>Matthew DeBord/BI</span></p><p class="caption">There is no substitute?</p></div><p></p></div></div></p><p>The flat-six-cylinder "boxer" engine, one of the auto world's truly legendary powerplants, sits behind the rear drive wheels. The 911 offers effectively the only example of this storied engine configuration on the market today (the rear-wheel-drive version of the Tesla Model S is technically a rear-engine car, but that's because its electric motor is lodged between the rear tires).</p><p>And it isn't hard to see why: in this day and age, nobody would engineer a high-performance car with the motor located so far aft. The thing is all tail, and in the 21st-century version of the 911, you have 375 horsepower (or more) being pumped to those rear tires. This contributes to some challenging natural driving characteristics, most involving the back end wanting to execute a quick pass of the front wheels.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/4f04a22beab8ea625e000028-900/classic911.jpg" alt="Porsche 911" data-mce-source="Wikipedia" data-link="http://en.wikipedia.org/wiki/Porsche_911" /><p class="source"><span><a href="http://en.wikipedia.org/wiki/Porsche_911">Wikipedia</a></span></p><p class="caption">Straight outta the 1960s.</p></div><p></p></div></div></p><p>Countless enthusiasts, historians, journalists, and engineers have carped about this over the years and made it into a prime whipping point for the 911; every debate about whether the car is worth a wit begins, crankily, with that rear engine layout. What was Porsche they thinking?</p><p>But then again, the car maker has spent the past 50 years addressing this issue. And really, the problem was solved by the 1960s. So it's more accurate to say that Porsche has been steadily perfecting the 911 design for four and a half decades. And by "perfecting," I mean endlessly fussing over. The car has been tweaked and tweaked and tweaked and them tweaked some more.</p><p>So the 911 Targa 4S that landed in the driveway of BI's test HQ was the current culmination of this lengthy technical exercise.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/57accc90db5ce9b61b8b621e-2400/img_3284 (1)-1.jpg" alt="Porsche 911 Targo C4S" data-mce-source="Benjamin Zhang/Business Insider " /><p class="source"><span>Benjamin Zhang/Business Insider </span></p><p class="caption">Top down.</p></div><p></p></div></div></p><p>For me, the 911 has always been the most self-contained of fast and fun cars. The Ferrari 458, for example, contains a screaming V8 located amidships. Press toward the redline and your eardrums could bleed. A Lamborghini with a V10 creates a wild symphony of exotic burps and burbles from its yowling V10. A Corvette Z06 has its 650-horsepower V8 parked up front, and the roar coming out of the exhaust pipes in the back is borderline unholy.</p><p>Against this rude cluster of supercars, the 911's behavior, sonic or otherwise, is subdued. Powerfully subdued, but subdued nonetheless. I'm not saying it's <em>quiet.</em> But it offers just subtle indication of power by comparison.</p><p>What really makes the 911 so great, and invariably leads me to conclude that its the finest car on earth and always will be, all happens when you slip behind the wheel. Obviously, this could just be <em>me, </em>but the car just feels right. Fire it up by turning - in the case of the Targa 4S - the starter switch on the left, and the flat-six springs to life. Get the seat and the steering wheel where you want them, and then off you go.</p><p>Our 911 lacked a manual transmission (there is a 7-speed available on some versions) for the ultimate bonding experience, but the dual-clutch setup (Porsche's outstanding PDK unit) plus 420-horsepower was swiftly a thing of beauty to drive.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/57accc11db5ce9b20f8b632e-1280/img_5714.jpg" alt="Porsche 911 Targa" data-mce-source="Matthew DeBord/BI" /><p class="source"><span>Matthew DeBord/BI</span></p><p class="caption">The level is high.</p></div><p></p></div></div></p><p>A word on beauty. I never think of the 911 as being a particularly stunning car. I mean, just have a gander at an Aston Martin DB9 or a Ferrari 488 or a Lamborghini Huracán in a charcoal paint job. All gorgeous. But then I get a 911 in the drivewway and some sort of dormant lustful synapse sparks. True, the bug eyes will forever remind of the 911's spiritual predecessor, the Volkswagen Beetle. But I don't care. Drool-drool-drool. Want. One. Please.</p><p>The driving is effortless and hypnotic. You can't find anything wrong with the twin-turbo engine: playing around with the power band is like caressing a tailored velvet suit or sipping 25-year-old first-growth Bordeaux - supple, smooth, with an undercurrent of attitude. </p><p>The handling is predictive. Lay the car into a corner or a curve and settle it into a speed and it just guides you smoothly around. There's never a reason to get jerky with the throttle or to hammer the brakes (but hammering the brakes, the superb brakes, is plenty satisfying). On the freeway, you can hold it in fourth gear and not worry about dropping into third for some punch. The power is a spikeless continuum. There's no better car to practice performance-oriented driving with. Yes, it's abundantly forgiving. Yes, it gives up hundred of hp's to the competition. But it doesn't give up the sweetspot of car-ness - it defines it.</p><p>I hate saying goodbye to a 911. I probably should have bought one by now, given the effect on me that it predictably has. I always seem to balk at the prices (although you can easily find an older model for around $20,000). And when I get a crack at a new one - our Targa came in at close to $150,000 - I tell myself to forget about and it and go shopping for an ancient Mazda Miata.</p><p>But wow, what a car. I honestly don't know how anyone will ever do better. Stay tuned for our review, by the way. Then we'll give you the whole story.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/126000-porsche-911-targa-4s-offers-fresh-take-classic-design-2016-8">The $126,000 Porsche 911 Targa 4S offers a fresh take on a classic design</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="dncnUyNTE6Jin-OQ3gYwazIss5kU1igK" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'dncnUyNTE6Jin-OQ3gYwazIss5kU1igK',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

The Porsche 911 has convinced me that it's the greatest car ever made

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/57accc11db5ce9ad018b62e2-1632/img_5788.jpg" alt="Porsche 911 Targa" data-mce-source="Matthew DeBord/BI" /><p class="source"><span>Matthew DeBord/BI</span></p><p class="caption">Want.</p></div><p></p></div></div>If you want to, you can talk yourself out of a lot of things in life. But it doesn't last - you always come back to fundamentals.</p><p>Take the Porsche 911. I last drove one about two years ago, a 911 4S Cabriolet, and it was all it should have been, a "drive for your life car" that serves up impeccable performance with a German pedigree. It showed no indications of letting me down behind the wheel.</p><p>But then came the siren call of other machines. Ferraris, Corvettes, Lamborghinis, McLarens. Cadillac Vs and BMW Ms and Mercedes AMGs. Audi RS. A Jaguar F-Type. A couple of Aston Martins. Even a mad little MINI John Cooper Works.</p><p>I had gotten too far from the the 911. And then another one showed up.</p><p>The 911 is the current soul of Porsche. The sports car has been in continuous production since 1963 and after five decades, it represents the culmination of Teutonic problem solving - because as great as the 911 is, it's based on a funky basic design.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/57accc46ce38f288008b639c-1054/img_5779.jpg" alt="Porsche 911 Targa" data-mce-source="Matthew DeBord/BI" /><p class="source"><span>Matthew DeBord/BI</span></p><p class="caption">There is no substitute?</p></div><p></p></div></div></p><p>The flat-six-cylinder "boxer" engine, one of the auto world's truly legendary powerplants, sits behind the rear drive wheels. The 911 offers effectively the only example of this storied engine configuration on the market today (the rear-wheel-drive version of the Tesla Model S is technically a rear-engine car, but that's because its electric motor is lodged between the rear tires).</p><p>And it isn't hard to see why: in this day and age, nobody would engineer a high-performance car with the motor located so far aft. The thing is all tail, and in the 21st-century version of the 911, you have 375 horsepower (or more) being pumped to those rear tires. This contributes to some challenging natural driving characteristics, most involving the back end wanting to execute a quick pass of the front wheels.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/4f04a22beab8ea625e000028-900/classic911.jpg" alt="Porsche 911" data-mce-source="Wikipedia" data-link="http://en.wikipedia.org/wiki/Porsche_911" /><p class="source"><span><a href="http://en.wikipedia.org/wiki/Porsche_911">Wikipedia</a></span></p><p class="caption">Straight outta the 1960s.</p></div><p></p></div></div></p><p>Countless enthusiasts, historians, journalists, and engineers have carped about this over the years and made it into a prime whipping point for the 911; every debate about whether the car is worth a wit begins, crankily, with that rear engine layout. Stupid, stupid Porsche. What were they thinking?</p><p>But then again, the car maker has spent the past 50 years addressing this issue. And really, the problem was solved by the 1960s. So it's more accurate to say that Porsche has been steadily perfecting the 911 design for four and a half decades. And by "perfecting," I mean endlessly fussing over. The car has been tweaked and tweaked and tweaked and them tweaked some more.</p><p>So the 911 Targa 4S that landed in the driveway of BI's test HQ was the current culmination of this lengthy technical exercise.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/57accc90db5ce9b61b8b621e-2400/img_3284 (1)-1.jpg" alt="Porsche 911 Targo C4S" data-mce-source="Benjamin Zhang/Business Insider " /><p class="source"><span>Benjamin Zhang/Business Insider </span></p><p class="caption">Top down.</p></div><p></p></div></div></p><p>For me, the 911 has always been the most self-contained of fast and fun cars. The Ferrari 458, for example, contains a screaming V8 located amidships. Press toward the redline and your eardrums could bleed. A Lamborghini with a V10 creates a wild symphony of exotic burps and burbles from its yowling V10. A Corvette Z06 has its 650-horsepower V8 parked up front, and the roar coming out of the exhaust pipes in the back is borderline unholy.</p><p>Against this rude cluster of supercars, the 911's behavior, sonic or otherwise, is subdued. Powerfully subdued, but subdued nonetheless. I'm not saying it's <em>quiet.</em> But it offers just subtle indication of power by comparison.</p><p>What really makes the 911 so great, and invariably leads me to conclude that its the finest car on earth and always will be, all happens when you slip behind the wheel. Obviously, this could just be <em>me, </em>but the car just feels right. Fire it up by turning - in the case of the Targa 4S - the starter switch on the left, and the flat-six springs to life. Get the seat and the steering wheel where you want them, and then off you go.</p><p>Our 911 lacked a manual transmission (there is a 7-speed available on some versions) for the ultimate bonding experience, but the dual-clutch setup (Porsche's outstanding PDK unit) plus 420-horsepower was swiftly a thing of beauty to drive.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/57accc11db5ce9b20f8b632e-1280/img_5714.jpg" alt="Porsche 911 Targa" data-mce-source="Matthew DeBord/BI" /><p class="source"><span>Matthew DeBord/BI</span></p><p class="caption">The level is high.</p></div><p></p></div></div></p><p>A word on beauty. I never think of the 911 as being a particularly stunning car. I mean, just have a gander at an Aston Martin DB9 or a Ferrari 488 or a Lamborghini Huracán in a charcoal paint job. All gorgeous. But then I get a 911 in the drivewway and some sort of dormant lustful synapse sparks. True, the bug eyes will forever remind of the 911's spiritual predecessor, the Volkswagen Beetle. But I don't care. Drool-drool-drool. Want. One. Please.</p><p>The driving is effortless and hypnotic. You can't find anything wrong with the twin-turbo engine: playing around with the power band is like caressing a tailored velvet suit or sipping 25-year-old first-growth Bordeaux - supple, smooth, with an undercurrent of attitude. </p><p>The handling is predictive. Lay the car into a corner or a curve and settle it into a speed and it just guides you smoothly around. There's never a reason to get jerky with the throttle or to hammer the brakes (but hammering the brakes, the superb brakes, is plenty satisfying). On the freeway, you can hold it in fourth gear and not worry about dropping into third for some punch. The power is a spikeless continuum. There's no better car to practice performance-oriented driving with. Yes, it's abundantly forgiving. Yes, it gives up hundred of hp's to the competition. But it doesn't give up the sweetspot of car-ness - it defines it.</p><p>I hate saying goodbye to a 911. I probably should have bought one by now, given the effect on me that it predictably has. I always seem to balk at the prices (although you can easily find an older model for around $20,000). And when I get a crack at a new one - our Targa came in at close to $150,000 - I tell myself to forget about and it and go shopping for an ancient Mazda Miata.</p><p>But wow, what a car. I honestly don't know how anyone will ever do better. Stay tuned for our review, by the way. Then we'll give you the whole story.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/126000-porsche-911-targa-4s-offers-fresh-take-classic-design-2016-8">The $126,000 Porsche 911 Targa 4S offers a fresh take on a classic design</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="dncnUyNTE6Jin-OQ3gYwazIss5kU1igK" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'dncnUyNTE6Jin-OQ3gYwazIss5kU1igK',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

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