Wednesday, October 31, 2012

The saviour of share market Chidambaram

Chidambaram has a dubious distinction of 'share market saviour'. Whenever he comes to power, he tries to help the markets. He is always bullish. He uses all the tricks in the book to take the markets up.

Now he openly started challenging RBI. It looks like threatening now. he seems to be losing the common wisdom that is expected from a economist. What a pity?

When inflation is at double digits would you believe that a finance minister of the country openly threatening/forcing  his country's central bank to cut rates only to save the blood sucking Real Esate Mafia? Unimaginable. This can happen only in India. Still people are mum. People simply donot care if their day to day expenses raises at a alarming pace, but they are only worried that their real estate investments should not go bad.

The comedy is by allowing FDI in aviation ( there is a hidden selfishness about saving state run banks here} and by allowing FDI in retail ( thousands of small traders life in limbo}, we think that we have done a great reform and expect economy to improve. Everybody with little bit of commonsense would know that by doing this government is trying to boost share market sentiment and by luring FII money they think they can bridge their CAD. The irony is the hot money can go at the same pace.

I believe Chidambaram is trying to boost sentiment at the cost of long term economic benefits for the country oonly to postpone the inevitable until 2014 elections. Unfortunately nature has a terrible way of paying back and I am quite sure now, the inevitable crash will happen before elections and Congress is going to pay dearly for this.

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