Rupee crashed to all time low of 60.72 at the end of the day today. Patriotic Indians should celebrate the moment as both Government and RBI are busy screwing up the economy day by day. Instead of saving the Rupee the RBI is increasing the provision limit for housing loans and also allowing real estate brokers to mobilize money from foreign countries.
I see the act of RBI from 2 perspectives.
1. RBI is desperate and being pushed by FM, so giving generous freebies to RE brokers.
2. To get in the foreign exchange, RBI is opening the RE sector, so that brokers can mobilize funds from foreign countries as other businesses in India lost the ability to do business within reasonable margins. Real estate brokers being brokers in India, think that they can continue doing business at current 60-80% margin even by mobilizing money from foreign countries. In a way I am happy as this may be the final nail in the coffin.
Meanwhile markets continue to crash. Nifty crashing below 5600. Let us wait and see the nifty below 5000 within couple of months.
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