Announcement

Collapse
No announcement yet.

International Market: Where World Economy Going On ?

Collapse
X
Collapse

International Market: Where World Economy Going On ?

Last updated: May 23 2012
193 | Posts
  • Time
  • Show
Clear All
new posts

  • Re : International Market: Where World Economy Going On ?

    Is finally things are getting unsettled like 2008, I see the similarities now. Cisco the networking giant has announced that it will cut jobs, HSBC has also announced that it will cut 10000 jobs, US is struggling to rise it's debt limit.

    To confirm further, my friends in textile industry say the orders from europe has completely dried up and now they are even struggling to run to their full capacity and most of the companies depend on bank loans for even paying monthly salary. This is not exaggeration, but this is what happening in manchester of south india. Textile industry is generally the pulse of the future as they book orders for the future.

    Moreover, the same happened in 2008 and we know what happened next.

    Comment


    • Re : International Market: Where World Economy Going On ?

      We have been a fool's paradise for some time now ...

      Originally posted by sridharchennai View Post
      Is finally things are getting unsettled like 2008, I see the similarities now. Cisco the networking giant has announced that it will cut jobs, HSBC has also announced that it will cut 10000 jobs, US is struggling to rise it's debt limit.

      To confirm further, my friends in textile industry say the orders from europe has completely dried up and now they are even struggling to run to their full capacity and most of the companies depend on bank loans for even paying monthly salary. This is not exaggeration, but this is what happening in manchester of south india. Textile industry is generally the pulse of the future as they book orders for the future.

      Moreover, the same happened in 2008 and we know what happened next.

      Nothing new Sridhar. The only difference between me (and a few guys like me) is that we knew that economy never really improved but seemingly improved because a lot of money was circulated into it (loans, Govt spending, etc) and this made many people think the recession was past.

      But there is a limit to everything. Excessive money circulated without any backing of REAL increase in productivity and consumption will eventually result in inflation taking off and a responsible RBI was forced to jump in before they too lost control of it. So the interest rates are being raised aggressively to tame inflation.

      But our general population would like to see interest rates as RBI's / Govts problem and insist that they should do something about it, while merrily overconsuming with more and more loans.

      It appears the cycle is turning now.

      Unfortunately the whole world is synchronised in this kind of behavior - since Central Bankers have implemented similar policies - and we are simultaneously being hit by a massive slowdown in every other economy, in a much worse way than ours. So, export economy is kaput. And to make it really bad the domestic consumption (which people always thought will keep chugging along whatever happens to rest of world) is also going kaput.

      Only place where I will differ with you is, this is going to be worse than 2008! As we are getting into a recession in a much weaker position.

      cheers

      Comment


      • Re : International Market: Where World Economy Going On ?

        hi, what if they print more money. i think the present situation in US is due to their decision they will not come up with another QE, looking at present scenario they will come with another one, dont know when it will end, and where r they heading to?

        Comment


        • Re : International Market: Where World Economy Going On ?

          Originally posted by snt2011 View Post
          hi, what if they print more money. i think the present situation in US is due to their decision they will not come up with another QE, looking at present scenario they will come with another one, dont know when it will end, and where r they heading to?
          Hi Snt,

          That's very much possible. And this will lead to hyperinflation and it will lead to more problems before finally it drag's down the whole world. For me, if US is going to go down they will not go down alone, they will make sure the whole world goes down with them.

          Regards,
          Sridhar

          Comment


          • Re : International Market: Where World Economy Going On ?

            Originally posted by wiseman View Post
            Nothing new Sridhar. The only difference between me (and a few guys like me) is that we knew that economy never really improved but seemingly improved because a lot of money was circulated into it (loans, Govt spending, etc) and this made many people think the recession was past.

            But there is a limit to everything. Excessive money circulated without any backing of REAL increase in productivity and consumption will eventually result in inflation taking off and a responsible RBI was forced to jump in before they too lost control of it. So the interest rates are being raised aggressively to tame inflation.

            But our general population would like to see interest rates as RBI's / Govts problem and insist that they should do something about it, while merrily overconsuming with more and more loans.

            It appears the cycle is turning now.

            Unfortunately the whole world is synchronised in this kind of behavior - since Central Bankers have implemented similar policies - and we are simultaneously being hit by a massive slowdown in every other economy, in a much worse way than ours. So, export economy is kaput. And to make it really bad the domestic consumption (which people always thought will keep chugging along whatever happens to rest of world) is also going kaput.

            Only place where I will differ with you is, this is going to be worse than 2008! As we are getting into a recession in a much weaker position.

            cheers
            Yes Wisey, it's all fake. But I have a question related to India. We know when the recession comes IT, ITES, Textile and other industries will either cut salaries and retrench people to survive and this makes the whole RE and other prices to go down.

            My question is for the past 5 years there were huge scams all over India and where all this money will go? Will it create a situation like the common man like you and me will suffer the recession. But the RE prices and other prices will be inflated by the dirty money of politicians in India.

            Regards,
            Sridhar

            Comment


            • Re : International Market: Where World Economy Going On ?

              Why won't prices come down when jobs are lost?

              Originally posted by sridharchennai View Post
              Yes Wisey, it's all fake. But I have a question related to India. We know when the recession comes IT, ITES, Textile and other industries will either cut salaries and retrench people to survive and this makes the whole RE and other prices to go down.

              My question is for the past 5 years there were huge scams all over India and where all this money will go? Will it create a situation like the common man like you and me will suffer the recession. But the RE prices and other prices will be inflated by the dirty money of politicians in India.

              Regards,
              Sridhar

              There is a lot of logic based on hope that, since Politicians have plundered money through land acquisition prices will not come down.

              But is there data to show that say, 80% of all land and buildings are in the hands of cash-rich, black-moneyed politicians?

              In my opinion (I may be wrong), though these people may have bought cheap and sold costly to builders who, in turn sold it for a profit to you and me, please note that, but for a small amount of land and building, the politician would not get rich until he SELLS the cheaply acquired land.

              I suspect that much of the riches have been transfered from you and me via the builder (who took his cut) to these bloodsuckers. Now its you and me who have to pay current and future earnings to the bank and who are stuck with this debt.

              Of course there are also many builders who have paid the bloodsuckers and are now owing money to the banks themselves.

              If this logic is largely true, then the slide will happen when you and me start losing jobs and income which will create NPAs and it will also result in sales going down, resulting in more NPAs courtesy builders.

              Ultimately the banks will repossess these homes and WILL come to market to dispose of them at ANY price.

              So, its all about the jobs - and income. If this start sliding, expect RE market will start going down, both in liquidity (first) and then in price. This is obvious from various examples all over the world. Why should we be different?

              Any problem with this logic? Of course, it may take time so long as money printing is being done!

              cheers

              Comment


              • Re : International Market: Where World Economy Going On ?

                I just thought of saying this. What happens if US economy comes down or what happens if whole world comes down...Is that end of world? .. Will we stop living? .. Will we stop eating?..Isnt the answer a BIG NO?...


                So to keep it simple just think about stuff which you can control and leave rest to ...(whomsoever you think :-))

                HAVE FUN! Enjoy Life! Note you can live even without single penny..

                Comment


                • Re : International Market: Where World Economy Going On ?

                  You are too cool

                  Originally posted by gayuraj View Post
                  I just thought of saying this. What happens if US economy comes down or what happens if whole world comes down...Is that end of world? .. Will we stop living? .. Will we stop eating?..Isnt the answer a BIG NO?...


                  So to keep it simple just think about stuff which you can control and leave rest to ...(whomsoever you think :-))

                  HAVE FUN! Enjoy Life! Note you can live even without single penny..

                  Comment


                  • Re : International Market: Where World Economy Going On ?

                    Originally posted by sridharchennai View Post
                    Yes Wisey, it's all fake. But I have a question related to India. We know when the recession comes IT, ITES, Textile and other industries will either cut salaries and retrench people to survive and this makes the whole RE and other prices to go down.

                    My question is for the past 5 years there were huge scams all over India and where all this money will go? Will it create a situation like the common man like you and me will suffer the recession. But the RE prices and other prices will be inflated by the dirty money of politicians in India.

                    Regards,
                    Sridhar

                    Well Well Mr Sridhar,

                    Had you been in Dubai in 2008 ,you would have seen the fun.
                    Everybody said dubai property cannot go down because the king has so much money that he can buy off each flat and house that comes up for sale and thus prevent downslide in prices of RE in Dubai.
                    And see the condition now...........
                    It seems even black money do not want to go for the depreciating asset.............

                    Comment


                    • Re : International Market: Where World Economy Going On ?

                      Originally posted by vatsalbajpai View Post
                      Well Well Mr Sridhar,

                      Had you been in Dubai in 2008 ,you would have seen the fun.
                      Everybody said dubai property cannot go down because the king has so much money that he can buy off each flat and house that comes up for sale and thus prevent downslide in prices of RE in Dubai.
                      And see the condition now...........
                      It seems even black money do not want to go for the depreciating asset.............
                      Vatsalbajpai - I was here in this forum for the past three years (though I post very rarely) and I was sharing the sentiment that the RE is abnormally inflated for the past three years and always expected it to come down when the world printing presses run out of ink.

                      In my previous post I was not saying that the RE will not go down because of black money, I just have doubts like the black money will be able to save RE, which clearly answered by Wisey and you (thanks for that)

                      Moreover, i think two weeks back myself and my cousin where in home fair which is conducted by LIC in Chennai. When we entered the fair we had a very small though of buying a flat, but after getting in we literally came out in 15 mins. The properties are that much inflated.

                      Myself and cousin earn around nearly 6 digit income per month, but still our view is we can't afford it. From the prices i saw, a person can only buy flat if his take salary or monthly business profit is more than a lac per month.

                      Regards,
                      Sridhar

                      Comment

                      Have any questions or thoughts about this?
                      Working...
                      X