Quote:
Originally Posted by sridharchennai
Wisey, I have a question for you. How this second round of recession is going to affect India? Last time when the recession hit us we were in a decent position to tackle recession. We were growing at 9%, inflation was it's on it's way down from 13% and the banks were in much better position.
Whereas, this time the growth is already slowing down, exports already reeling under pressure, inflation is not on it's way down even after frequent interest rate hikes by RBI and our banks much more exposed than in 2008.
On the employment and business, is the job market is just going to be stagnant or there is going to be unannounced retrenchment like before and salary cut. Both are not good for the economy and if the retrenchment happens it's going to be a huge blow.
How are the businesses that are related to export gonna survive this time? There are also some small firms that provide very specialized IT and ITES services. How will these firms get affected?
Generally, what is your opinion on the above facts? I know it's a lot of questions  and hope you get the time to give us your views. |
People, don't assume that one has all the answers!
After all, this is happening for the first time in our lifetime and maybe in modern history!
That there will be a recession, its nearly certain. Whether it will be global one doesn't know. Whether it will turn into a depression and a great depression is also a little in doubt.
All of these continue to be on my radar simply because you can expect politicians to do their best in terms of decisions bad in economic terms.
The FED is meeting today. They have a difficult task.
Why is QE3 required at all? The only reason for this is to increase the bailouts by EU Govts of EU Sovereign Debt. But this will NOT go very well with Americans.
Let us wait and watch.
cheers