Mr.Subbarao - A victim of circumstances

As promised my observations on soon going to be retired Dr.Subbarao RBI Governor.

First of all, I think he is good at heart. He really wants to help so called Mango man. But he was royally cheated by the politicians. It is sad that he could not win the battle against politicians not to forget about his infamous battle against inflation.

The pressure from corrupt politicians, chamcha govt officials, corporate mafia and pimp media is enormous on him to cut the rates. He often makes right noises, but his actions are not matching his words.

Soon after the imminent collapse of Indian Economy the corrupt politicians along with corporate mafia is going to finger point Dr.Subbarao as the sole reason for the economic collapse we are going to witness within a year. I would say it would be wrong to point Dr.Subbarao alone, but he is also one of the reason. Let me elaborate.

1. Initially he was reluctant to raise the rates at required levels. He responded too late and too little.

2. Time and again he says 'we need to sacrifice growth to control inflation', in reality he never did that. His infamous act of increasing rate by 0.25% actually caused more damage. The reason being Indian set up and Indian mentality got used to this kind of rate cut the the inflation expectation was never affected by this act. To me his biggest blunder was this. He was behind the curve most of the period because of this initial mistake.

3. Another big blunder is that he failed to foresee the housing bubble and ironically he still maintains there is no bubble in Indian housing market. Maybe he is saved as the collapse of Indian housing market is expected next year, a good one year after his retirement. But he could have avoided if he foresee.

Reason

He is political appointment and spent most of his career at government side.

He is not a banker

These are the two main reasons which stopped him functioning effectively.


Out of Control

Global crisis is also worked against him

Finally he will be blamed by both the groups. After the collapse people say he had not controlled the inflation at the time it was needed. The corporates also will blame ( already they are doing) him for killing growth.

BUT THE REAL TRUTH IS THAT OUR ECONOMY IS KILLED BECAUSE OF GREEDY CORPORATE MAFIA WHO FORGOT TO DO ANY BUSINESS FOR REASONABLE MARGIN. EVERYBODY WANTS TO BECOME RICH OVERNIGHT AND GOVERNMENT SUCCESSFULLY INSTILLS THIS MENTALITY TO MAJORITY OF INDIAN POPULATION.