Seeing the bottom?
The meme that the global recession might finally have bottomed out could be a little premature. Markets, including in India, have revived somewhat, but many are sceptical that this rally will last.
Also, if the steps taken in the US to deal with the financial crisis are not ambitious enough - and it looks increasingly likely that this is the case - we will see the financial crisis deepen a lot more before world markets recover.
Tags: global financial crisis
April 12th, 2009 at 10:14 am
We have seen these kind of optimism among the fund managers and Business TV anchors again and again in the last 18 months after every rally in the market. What else could we expect from people who are paid to be optimistic and to use all kind of catchy jargons. It is the worst credit bubble in the human history and people who lived beyond there means has to pay the price for it. Its wholly different world in INDIA, the politicians just started the excess. Lets wait and see where they going to take us through!!!
April 13th, 2009 at 6:28 pm
Stimulus packages from US and European economies are based on printing more of US dollar, Pound Sterling and Euro as they think the apetite for their currencies is still strong. But this time things may not be as they expect. If things do not unfold as per their plans, then stock markets will go back to the lows once again all over the world. And this seems to be the more likely scenario.
April 13th, 2009 at 10:40 pm
The banks in US are not out of insolvency threat and will take a while and will need further bailouts. Even if some stability arrives I dont think the liquidity will be at the same level as before. The cost of capital will be higher, debt will be expensive and risk management will be so tight as to be suffocating. Will bouyancy in stock market spark any recovery? Will IPOs start again to offset debt as a means of funding? Can the economy bypass banking recovery?
April 20th, 2009 at 5:42 pm
Nandan Sir, According to you , what will ( or Should be) india’s Role to bring World Economy on track ?
Will as per Media’s hype india recover sooner than other Countries ? if yes this wont definitely be an automatic . what measures should Government take to tackle these issues ?
Will Software industry suffer to the extent it is being pictured by Media ?