5 Aug Wrap: The day's news and analysis

• Today’s free fall in stock markets around the world didn’t come out of the blue. Given the fragile state of the global economy, it was fated to happen. And, what’s worse, we could see more of them . • The Sensex hit a new 2011 low, but recovered to close 371 points lower at 17,321. The Nifty closed at 5,224, down 108 points. Take a look at the blow-by-blow account of the trading day.  Here _Firstpost’_s editors R Jagannathan and Venky Vembu talk about why global markets are falling, how it all began and whether or what exactly the larger implications and effects on the Indian market and economy could be. • Amidst all the gloom over an economic slowdown, untamed inflation and fears of a policy paralysis, we have lost sight of an interesting national milestone: India will become a two-trillion-dollar economy this year. Our editor-in-chief, gives you a low-down on what this means. • A look at the 10 previous crashes in the stock market and what triggered them and some broad pointers that can help you make sense of the current turmoil and beyond. [caption id=“attachment_55356” align=“alignleft” width=“380” caption=" Rahul’s long stint as political apprentice is well over. AFP Photo"] [/caption] • First it was Atal Bihari Vajpayee, then Manmohan Singh and now, Sonia Gandhi. Their parties made no effort to clarify the chain of command when they went under the scalpel. “The problem of keeping health a secret is clearly an Indian affliction. We try to keep the truth away from all till it is impossible to hide it, and this is what we should be concerned about in a modern democracy,” says our writer. • But Sonia’s surgery has brought to light Rahul Gandhi’s position in the party. He was part of a four-member team looking after the party in his mother’s absence. Our writer argues that his long stint as political apprentice is well over. • Attacking Sonia Gandhi for her Italian origins is where Sonia-haters reach a logical impasse . “If there had not been such fierce opposition to her becoming the Prime Minister, she would have indeed been forced to be responsible and accountable,” as they also demand. • The 700-page CAG reports was tabled in Parliament today and it spells bad news for the PMO and the Sheila Dikshit government. Documentation, processing of contracts, appointment of Suresh Kalmadi, overspending — the list is long. • P Chidambaram’s admission yesterday that cross-border terrorism is not the only source of terrorist activities in India. Homegrown terror is the new big threat. “Would Chidambaram’s statement change the ground realities? Or was it just a statement on the ground reality?” The answers are elusive at this point, says our writer. • Our celebrity columnist Ajit Agarkar writes the challenge Dhoni’s team faces is not at home but away from it. “Ten years from now, they will not be judged by the wins they had against Bangladesh or Zimbabwe or Sri Lanka; they will be judged by how well they’ve done against the best teams of their era.”