Can anyone explain?
by Neutral on Apr 04, 2008 01:20 PM Permalink | Hide replies

I am spending more these days due to rising prices of essential commodities.

This price rise cause more inflation.

Govt wants to cut the inflation.

RBI is planning to increase the FRR and thus Home Loan Interest Rates.

Now I will be paying more on my EMI.

So a step taken by govt to reduce price rise is making me pay more EMI...

What is this logic?

Can some one explain?

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RE:Can anyone explain?
by swamy on Apr 04, 2008 01:23 PM Permalink
good question. U r unfortunately scre*wed. Normal people do not have housing loans. Aam admi is getting pained because u r willing to spend more as u got a loan at a cheaper interest. Once the loan rates increase, u will not ave access to cash to spend, since supply of money decreases, price drops. U r collateral damage

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RE:Can anyone explain?
by Neutral on Apr 04, 2008 01:27 PM Permalink

I agree that I will spend when loan rate increases. But, i have to spend for essential commodities like rice, dal, oil, vegetable etc.

As you said i am more at a damage bcos I made a big mistake in taking loan from ICICI bank

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RE:RE:Can anyone explain?
by Neutral on Apr 04, 2008 01:28 PM Permalink

typo error:I agree that I will spend LESS when loan rate increases

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RE:Can anyone explain?
by SahadevanKK on Apr 04, 2008 01:25 PM Permalink
Govt is not at all bothered about the price rice, because they are getting everything free of cost: Free vehicle, free furnished accommodation, servants will be paid by the govt., free petrol, free telephones, free electricity, free water, free LPG, free food grains, free milk, free vegetables, free train tickets, free air tickets and everything free. So they cant understand the problems of you and me and common man.

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RE:RE:Can anyone explain?
by swanand bodas on Apr 04, 2008 01:59 PM Permalink
Commies are eating butter and putting blame on congress. If they had let the govt do reforms, this price rise would not have happened. Cong is also leech drinking blood of power if they had guts they would have been assertive in handling commies the way BJP handled allies like DMK, AIADMK, Trinamul and TDP who had always been demanding.

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RE:Can anyone explain?
by georgina rice on Apr 04, 2008 02:07 PM Permalink
Psycho!!

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RE:Can anyone explain?
by sunil pradhan on Apr 04, 2008 01:32 PM Permalink
It's all law of demand & Supply...if sometimes any external interference from(inefficient govt.) in the natural law of demand and supply and this is the consequence.

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