Any body who is still optimistic that the subprime pain is going to diminish quickly is surely living in a fairy land. For a country that thrives on plastic money, hiding the recession reality is no big deal. No amount of FED rate cuts can salvage US economy out of recession. The fact that ICICI and HDFC are having subprime exposure in tunes of 85 billions rupees under the carpet implies that US has already entered into recession. The magnitude of the crisis is such that it is going to wipe out some of the banks and major financial institutions. Dont get lured by sudden spikes in indexes to enter again. Either book losses or profits, but it is time to exit from markets with whatever you are left in your portfolio immediately. Indian markets will go tailspinning to see the abyssmal depths of 7K to 8K by the end of this year. This catastrophe of 2008 will go down into history as the year of great economic holocaust. Peace and senses will prevail in 2009. Mark my words.
