Anyone still optimistic that US can avoid recession with all the fed rate cuts and economic stimulus packages must be in utopian heights. FOR A COUNTRY WHICH THRIVES ON PLASTIC MONEY, HIDING THE RECESSION REALITY IS NO BIG DEAL. ICICI AND HDFC HAVING SUBPRIME PAPERS WORTH 12 BILLION DOLLARS UNDER THE CARPET IMPLIES THAT US HAS ALREADY ENTERED INTO RECESSION PHASE. THE MAGNITUDE OF THIS CRISIS IS SUCH THAT IT IS GOING TO WIPE OUT SOME OF THE BANKS AND FINANCIAL INSTITUTIONS. INDIAN STOCK MARKETS WILL GO TAILSPINNING TO SEE THE ABYSSMAL DEPTHS OF 4K TO 8K BY THE END OF THIS YEAR. THIS CATASTROPHE OF 2008 WILL BE REMEMBERED IN THE HISTORY OF WORLD ECONOMIES AS THE ECONOMIC ARMAGEDDON. MARK MY WORDS - PROF AJ DARUWALA
RE:US HAS ALREADY ENTERED RECESSION
by rexberry on Feb 06, 2008 03:58 PM Permalink
isiliye even after settlement of my ICICI credit card... ICICI is telling me to pay 29rs every month... but as you mentioned i m bit circumspect regarding indian stock market coz even the fed interest rate cut didnt help market to reach its earlier heights.....any relation wid bejan daruwalla???
RE:US HAS ALREADY ENTERED RECESSION
by OldKid on Feb 06, 2008 03:57 PM Permalink
Slowly rising from ashes will be Reliance bank IPO. Peace will prevail in 2009.. Amen !!...LOL.. kya kunnas bola baap... mazaa aa gaya
RE:US HAS ALREADY ENTERED RECESSION
by Saths on Feb 06, 2008 04:07 PM Permalink
Yes US is already in recession. Jobs have evaporated. Houses are on sale literally in every street. In some parts of the country(US) house prices are slashed by more than a half. People are walking away from their homes letting it go in to foreclosure and declaring bankruptcy at will. The FED rate cut will help and should help US economy and only US economy. Generally India people are the most greediest and that includes me. If you enter the stock market then book profits time to time and don't hold it to get 1000% return in one year. If you do so then only god can save you. In any market a 20% appreciation is more than enough to book profits. Remember one thing that getting things done in India is not really a walk in the park. Several companies have taken some big steps have unveiled several big project plans. Execution is very critical and failing to do so will spell doom for these companies. So be very careful and book profits with less greed.
RE:US HAS ALREADY ENTERED RECESSION
by TheOneAndOnly on Feb 06, 2008 06:44 PM Permalink
US Housing Boom was to circulate More Money in the Economy (GDP) to create a feel good factor about the Invasion of IRAQ.
The Same is being done even in Indian - as usual a couple of years lagging behind USA.
Indian Realty and Infrastructure Industry also will Doom very soon.
All NRIs who bought plots & flats at huge rates have just paid back the Big Bucks they earned over years.
Believe in Life Giving and Life Saving Industries Like Agro, Food, Retail And Pharma Industries. Even BioTech Might not be a good bet, excluding some innovative companies.
RE:US HAS ALREADY ENTERED RECESSION
by srinivas ragunathan on Feb 06, 2008 04:29 PM Permalink
Veru well said. Sane people shud follow this advice and get out with the decent returns they have already made. But greedy never listen and kill the golden goose !
RE:US HAS ALREADY ENTERED RECESSION
by on Feb 07, 2008 11:12 AM Permalink
Professor, you are predicting this as an economist or an astrologer? If as an economist,don't forget that USA has a GDP of $11,000Bn as against 700Bn of India and 1900 Bn of China.The writer has quoted just 80Bn as losses of various Banks in the above table.It may look a big amount for us Indians, and the Banks like SBI, but for the Banks here in USA,it is no more than one time newspaper news.The trouble with us Indians is that we try to reach at conclusions sooner than realities.When recently we Rupee appreciated against Dollar by five Rs or so, everyone is talking of $ slide & US recession, But they forget that when Manmohan Singh presented his first Budget as FM,Rupee slided by more than 10 Rupees to a Dollar.US economy is not as fragile as that of Asian Countries. Sahiwal
