QE (Quantitative Easing) by US federal government is going to stop.
The very thought is giving shivers to Indian finance minister Mr.P.Chidambaram. With a mere 1-2% fall in Indian markets Mr.Chidambaram is coming on TV and almost begging to foreign investors to stay invested.
He very well know that money has no heart. Whether you like it or not we are staring at a huge crash. The people who talk about and worry about 5% GDP will see the contraction of our GDP within couple of years. Congress has to pay for its sins. Knowing the consequences now Indian Finance minister is working overtime to save the share markets. His single point agenda is to save the share market and nothing else.
Already markets are artificially jacked up by FII money which comes into India by spill over effect from Europe, Japan and US QE. If US decides to stop and the bond yields increase in US, then the money which flowed into India will go back to US in no time.This will cause a huge crash in Indian share markets.
Real Estate is un-affordable for end user
Drinking water scarcity increasing
Job opportunities are dwindling
Banks are making losses
Farmers are struggling
Power generation , the less said it is better
Chidambaram is not interested in solving the above mentioned issues. He wants to save share markets. Coming on TV to assure speculators. Good for free market.
But dont forget. This country is going to pay for its sins.
Headlines today:
ReplyDeleteIndia’s GDP growth hits decade-low of 5% in 2012-13
Rupee continues its downward spiral
I'm waiting for the calls to reduce interest rate!
You have good grasp of Indian economy, but what people need is solutions.
ReplyDeleteDon’t complain against our politicians, our governments, our neighbors, or our society because complaint is the language of children. You are matured and on how many people can you give complaints? We chose to live in a dust bin and what is the use of complaining about the stinking smell? How ridiculous it is?
Now, the divide in our country is 90% and 10%, but we are following the footsteps of America. In America people feel that the division is 99% and 1%. The middle class in America is getting reduced. In future America would be only two tier society, the rich and poor.
ReplyDeleteIndia should awake.