It has been almost 4 months I have updated this blog, for personal reasons. Anyway, much water has flown in the gap, several developments took place domestically as well as globally. While crude corrected after reaching 148$ to as low as 92$ recently, due to demand destruction, and signs of global slowdown impacting the bull run in commodities too, pushed it down. Crude currently trading around 105$ is still inflationary for most of the economies, our inflation has touched 12.63% already and cooled a bit to 12.10% levels due to several measures taken by RBI and Government yielding some results though moderately.
The Subprime crisis has spread to Credit sector in UK and US and major investment banks like Lehman Brothers, Goldman Sachs, Morgan Stanley are in trouble, has shattered american investor sentiment, and equities too. The trouble spreading to AIG, the largest insurer from USA sent shock waves amongst financial sector world over, and Fed's rescue package brought some calmness in equities. US Government now realises that the crisis is serious and deep, and working on 750$ billion package the buy back the illiquid troubled assets of financial sector, to clean up the system, is yet to be in place. Is it right to take such measure is being widely debated amongst ecnomists and analysts. Whether this move by Government will save the financial crisis and system from crumbling and revive US economy is again a Trillion dollar question?
These developments abroad do also have their rub off effect on our economy, though we are not totally dependent directly on US economy like Hongkong, Japan etc., as a part of global economy, and US dollar being the international medium of exchange, will affect our economy considerably. US Presidential elections scheduled for in November this year, the policy that might be pursued by the new President will certainly have impact on Indian Economy too. The Indo-US Nuke deal is passed by US foreign relations committe by 19-2 vote, and our PM Dr. Manmohan Singh is in US to sign 123 agreement, when their senate approves during this session.
The inflation data to be released today at 5.30 p.m. might show an uptick to 12.24% the other aspects of our economy shall be discussed from tomorrow regularly
Wednesday, September 24, 2008
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