One of the reasons of East Asian crisis was huge foreign investment in real estate. Real estate prices were going up day by day because of foreign investment which was unrestricted by any government. When real estate market bubble burst whole crisis begins. Some what similar is happening in India too. Both real estate and stock market are going up simultaneously. Government and RBI need to be cautious
RE:investment patterns also matters
by lax on Jul 20, 2007 10:39 PM Permalink
u r totally wrong about India, coz the RBI doesnt permit FIIs to invest in Real estate. Also investment in stock market is regulated. Admit that, the stock market is dependent on the FIIs, but not the real estate market.
