Monday, January 21, 2008

How independent is india?

US markets is hit by sub prime problem taking down many financial corps...citibank wrote close to $10b loss, Merrill Lynch marks $8b+ loss, country wide got sucked up by bank of america. The culprit being fundamental flaw---Lending loans to people with not so great credit worthiness. We can argue as to who is worthy and who isnt, what must be the safe limit group to whom money could be lent. Prez Bush has asked for $140b bail out package, tax cuts etc...but leaving all these, the fundamental question is can india be called independent and self reliant market/country?

The answer is NO. Every country in the world looks up to US, US is more of a market for goods...US is more of a standard/bench mark. If this is the fact, then how could india be shining and growing economy? I would call it an US dependent economy. Look at the job market, investments, export destination of good and people and many more. If US says India is too costly for BPO and pulls out the plug....this one thing can put people to streets, plunge the country into economic crisis. The oil/gasoline alarm can inflate import bills and bring the country to its knees. With all these small factors, how could India be called a rock solid independent, stable and emerging markets?

The stock market numbers are a joke, sometimes it hits 21k with no logic and next day it is hovering at 15k mark. The people putting their money have no fundamentals and knowledge, they just put in as their neighbour or friends made money doing nothing. Such people pumping up or down the market is a dangerous phenomenon. Each time the market goes down, lakh crores of money just vanish out of thin air. Then these stock market advisors just post some numbers and give their opinion and people just lap it up. I am not saying these people must never be allowed but atleast you need to have some idea before they are allowed into trading zones. When the citizens dont have independent thinking, how can you expect the country to be independent and smart? :P

Our honourable and esteemed PM is an economist and a by product of oxford, why cant he think of ways to insulate the economy from outside interference? Why cant he make the country more self reliant and independent? Why doesnt he introduce non-conventional energy funds instead of pumping money into useless indira vikas or rajiv gandhi yojans or some non existent NGO run by some obscure party worker?

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