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Trust deficit in economy is well over 100% of GDP
The “trust deficit” in the economy is much larger than all other deficits put together. The “trust deficit” swamps the fiscal deficit and current account deficit and has the potential to pull down economic growth well below trend levels. There is an urgent need to rectify this “trust deficit” if #Crony capitalism #GDP
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How to play a topsy-turvy currency and commodity market
The renminbi (Chinese yuan, or CNY) hit a record against the US dollar (USD) on 26 October 2012. The USD/CNY rate closed at CNY 1.2380 on Friday, an all-time high for the yuan. Currency markets are expecting the CNY to rise further against the USD as traders unwind long USD #Commodity prices #Smart Money #Yuan-Dollar
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RBI Policy impact: No fireworks for markets this Diwali
Equity and bond markets were hoping that the RBI would give them a cause to cheer this Diwali. However, the central bank put paid to that hopes as it cut the CRR (Cash Reserve Ratio) by a token 25 bps and guided for any action on the repo rate only #Bonds #Diwali #equity markets #MonetaryPolicy
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Kingfisher crisis: Inflated egos lead to business disasters
Finally DGCA has suspended the licence of Kingfisher Airlines. It is a surprise the bankrupt airline was allowed to fly for so long, leading to unnecessary suffering of employees, lenders and shareholders of the company. Kingfisher should have been declared bankrupt a couple of years back and then started life #air india #ConnectTheDots #Kingfisher Airlines #Kingfisher Crisis #Vijay Mallya
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Your realty investment just got riskier
The exposure of the cosy DLF-Robert Vadra property deals and the accusation that the BJP president took away farmer’s lands may not really implicate anyone. However, the effect of these accusations, which have been blown up by the media, may have just made your investments in real estate riskier. How you #Arvind Kejriwal #DLF #Real estate #Vadra #WhyNow
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Overheard: What Ben and Subbarao schmoozed about
US Treasury Secretary Tim Geithner and the US Federal Reserve (Fed) Chairman Ben Bernanke visited India last week and their first port of call was the Reserve Bank of India (RBI). Ben is arguably the most powerful person in the world as his organisation’s balance-sheet, at $ 2.9 trillion, is at #Ben Bernanke #D. Subbarao #Ear To The Keyhole #WhatNext
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Retail investors should stick to ethical investing
Mango people’s indignation over the DLF-Robert Vadra controversy prove how much they despise the businessmen-bureaucrat-politician nexus. The nexus hurts the common man in more ways than one. However, if the common man, who is also a retail investor, directly gives money to a businessman with political connections, he is deliberately jumping #DLF #InMyOpinion
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Don’t bet your last dollar on the rupee’s rise
The sentiment on the Indian rupee (INR) has changed on a dime. The INR, which was supposed to fall to Rs 60 to the US dollar (USD) a few months back, is now expected to trend well below Rs 50 to the USD. The INR had touched all-time lows of #CAD #CurrencyWatch #Dollar-Rupee #Rupee
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Will the rope trick effect on markets last long?
The western world has always been fascinated by the rope trick where a man with a flute drives up a rope from a basket. They like to believe in the magic of the rope trick as India is seen as an exotic country with magicians everywhere. The rope trick effect is #investors #Sensex #TheContrarianView
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Dear FM, please leave the RBI alone
Finance Minster P Chidambaram has said he expects the RBI to fall in step with the government by reducing interest rates in response to FDI reforms and the increase in fuel prices undertaken. He has said this in an interview published in The Economic Times today. The government seeking a cut #Chidambaram #FM #Inflation #Interest rates #RBI #Rupee