India is different because our policy makers want our economy to slowdown completely before they take any action.They are forgeting that prevention is bette than cure and once the situation becomes complete out of control then it will start a blame game.
RE:complete slowdown
by Saths on Feb 12, 2008 01:03 PM Permalink
Amit you're wrong. Economy over heating is very bad rather than slowdown. Look at China fighting real hard to control the overheating economy. If RBI cut rates then banks will start lending more money. We are already getting a million calls to get cards,variety of loans etc. But repayment is what matters. As more and more defaulters appear banks revenue will be hit severly. The speulators are out wanting to make more money from the stock markets are creating all sorts of rumours so RBI would cut rates. I hope RBI does not budge and keeps the rate unchanged.
RE:complete slowdown
by V S on Feb 12, 2008 01:03 PM Permalink
yes even a part time mba can suggest that cutting interest rates and increasing growth will reduce poverty.
However , our govt is more interested in keeping inflation low and also keeping growth low so as to stay in power.
It seems short term thinking and sarkari attitude is still prevalent in many govt. run institutions.
