The reduction of taxes, spending on rural employment and now a food security bill are all short-term measures guaranteed to bring down the country in the long term.
Corruption has become a selling point for builders, while investors justify paying high prices citing corruption. But buying property based on it can only lead to disaster.<br /><br />
The RBI could have offered a repo rate cut if only the government had achieved some measure of fiscal consolidation.
Yields on eurozone debt have fallen, but don't assume that the crisis is abating. This is just the result of the ECB's liquidity boosting activities.
What we term as mainstream media tended to focus on the negative, apparently because it "sells". The author tells us why the web is more positive, an uplifting place.<br />
Even after accounting for dollar sales, and extra note printing on the govt's behalf, there is a Rs 65,000 gap in unexplained liquidity demand.
Since the economy always responds with a lag to rate cuts, the RBI needs to start cutting repo and CRr rates in its 24 January policy
Low eurozone interest rates and high liquidity from the central bank will can act as a catalyst for carry trades.
The government's fiscal failures are, willy-nilly, being financed by the RBI. But for the central bank, interest rates would have shot through the roof.
Debt reduction and lower consumption will be the watchwords for India. This is good for the markets in the long run. Look for a revival by the second half of 2012.
Given extremely tight liquidity conditions and soaring short-term rates, the RBI has no option by to ease liquidity by cutting the cash reserve ratio.
Dravid, Nehru and Bradman, Greg Chappell and Ganguly, history and cricket, Australia and India, cricket and captaincy, truth and consequences, insult and injuries – we have it all, as the series is underway in only six days...