Sriram Vadlamani can ’sense that something is seriously wrong’:
Linked by kuffir. Join Blogbharti facebook group.I am sick and tired of our financial minister and every other bureaucrat parroting the same words. “The fundamentals of the economy are strong”. Which raises doubts about believing those 7 words. Why is the Sensex and nifty tanking so much if the fundamentals are strong? Why were the dreaded p-notes re-introduced? Why did the RBI cut CRR rate by 150 basis points to 7.5%? Why are the global financial ministers meeting in an emergency fashion?
Honey,
The FM in INDIA is right, because, the long term(say 3year)story of our economy is in fact ” robust growth”. Why becoz the investments that have taken place after the 90’s and 2000,s liberalizion drive is paying off and will eventually peak into accelarated growth. How ever in ht enar term, the international trade scene is grim and our trading partners, (read USA< EUROPE AND RUSSIA) are gojng thro a bad patch thanks to the wonder ful financial crisis ..And dont ever think that the stock market is the economy equivalent!!! The stock market, darling is a madhouse where sentiment plays the key master of ceremonies.. while the economy is somehting slightly bigger and does not depend on sentiments only…The FM may be right after all !
I think our strong ‘fundamentals’ are being eroded by poor governance. The spreading social unrest in many parts of India is an indication of failure of governance. This has to be tackled first, but there seems to be no political Will at all!