US 10 year bond yields at closing high of 2.83 and as per technical studies it is poised to touch 3.5 soon. This is going to cause much problems. FII will run for cover from Indian markets as US yields are much better than Indian yields after adjusting to hedging costs.
Indian stock crash yesterday is a precursor for the things to come.
When Mangoman was begging for rate hikes he was ridiculed. Now the history repeats and idiots who decide economic policies are made to eat humble pie. UPA screwed the country handsomely and almost 30% of Indians investing in real estate to neck deep and praying for rate cut. All businesses are involved in real estate and praying for rate cut. My dear stupids, if everybody want to sell the plots and flats at higher prices, who the hell is going to buy from you?
Who is earning nowadays? Do you know for the past 2 years how many jobs created in the country? Do you know 70K engineering seats are vacant in Tamilnadu alone?
Subbarao's parting time bombs starting to burst.
1. The repo limit controls indirectly increased the rates. Now it is matter of time to increase rate really.
2. The capital controls measures last week is the last nail in the coffin.
Thank you Dr.Subbarao, you have given back to the government in the same coin. Let us hope the excesses are swiftly blown away.
Next in line. Real Estate of India. The government is hell bent to save the brokers community and now it is time for them to face the hard realities of life.
SOVEREIGN DOWNGRADE IS SO NEAR. IF THE RATINGS AGENCIES DO NOT ACT NOW THEN WE MAY HAVE TO DOUBT THEIR INTEGRITY AS WELL.
Indian stock crash yesterday is a precursor for the things to come.
When Mangoman was begging for rate hikes he was ridiculed. Now the history repeats and idiots who decide economic policies are made to eat humble pie. UPA screwed the country handsomely and almost 30% of Indians investing in real estate to neck deep and praying for rate cut. All businesses are involved in real estate and praying for rate cut. My dear stupids, if everybody want to sell the plots and flats at higher prices, who the hell is going to buy from you?
Who is earning nowadays? Do you know for the past 2 years how many jobs created in the country? Do you know 70K engineering seats are vacant in Tamilnadu alone?
Subbarao's parting time bombs starting to burst.
1. The repo limit controls indirectly increased the rates. Now it is matter of time to increase rate really.
2. The capital controls measures last week is the last nail in the coffin.
Thank you Dr.Subbarao, you have given back to the government in the same coin. Let us hope the excesses are swiftly blown away.
Next in line. Real Estate of India. The government is hell bent to save the brokers community and now it is time for them to face the hard realities of life.
SOVEREIGN DOWNGRADE IS SO NEAR. IF THE RATINGS AGENCIES DO NOT ACT NOW THEN WE MAY HAVE TO DOUBT THEIR INTEGRITY AS WELL.
One of the problem with India is there is no publishing of data like unemployment rate,house price fluctuation etc unlike the west.So Mangomen will come to know only when the shit hits the fan.It is time for our countrymen to go back to make real use of land ie. farming rather than speculate on land.
ReplyDeleteMy suspicion is that Fed will get scared at some point and may put off QE taper by a year or so.That is the only hope for India.
regards
Suresh
I expect a bail-out from the IMF. Rather than a bail-out a guarantee to ensure that the crisis doesn't get worse. There is a good chance of it happening after the national elections but if things get really bad before that then it might happen sooner.
ReplyDeleteOf course, the IMF will extract a heavy price from India for their back-up.
IMAGINE if this yield in US hits 5%+ it will create havoc here
ReplyDeleteNo wonder subu and Ben bernanke jumping ship
ronit,
ReplyDeleteplease write to ksmuthusamyfinance@gmail.com