Are you really making money?

harharmahadev · #**131** 11th July 2008, 07:09 AM

Quote:

Originally Posted by deepsa52

True, Indian situation is not that bad when compared to US - but yes in general I am viewing India through US glasses, ie VERY bearish on Indian economy. The main reason is that currency movement is not reflecting the strength of Indian economy. Repeating the same thing again - Yuan and other major currencies are strengthening vs USD past six monthts. As long as Rupee tracks the dollar, India is probably headed the same way, ie towards borderline hyperinflation. If you remember, Rupee was strenghening till around Dec 2007. Inflation started to accelerate when the USDINR trend was broken ( I pointed this out back in March before all the ugly news on Inflation ) . What can a few trillion in excess money supply of the world reserve currency ( which is going to be EUR in a few years time ) do to the system ? It is going to be chaotic. A 20% Rupee interest rate will fix that problem

There are other factors as well, the other three of the BRIC are doing better and money will flow there. Brazil and Russia are big time commodity exporters, China can stand on its own with its huge currency reserves and its expanding mineral wealth.

Check this out as well..

http://www.economist.com/finance/eco...ry_id=10429271

I can always change my opinion when Rupee starts tracking Yuan or Euro. I am willing to listen to other arguments as well.

Deepa: I havent read all your posts, but I agree with ur views on the rupee, gold, and the overall investment outlook....I share the same views.

deepsa52 · #**132** 11th July 2008, 08:12 AM

Throw in half a dozen political parties as well..its going to be fun

pradeepsnayaka · #**133** 11th July 2008, 11:40 PM

Today i made losses of 10k this market is short, when i am long...... ohhhhhhhhh

deepsa52 · #**134** 14th July 2008, 05:15 AM

money(.)cnn(.)com/2008/07/13/news/economy/fannie_freddie_sunday/index(.)htm?postversion=2008071318

The move gives Fannie and Freddie the same access to the funds as commercial banks and Wall Street firms.....

The decision by the government to step in come at a tumultuous time for the two shareholder-owned companies, which own or back $5 trillion in home mortgages .
__

The GDP of India is around a trillion dollars.

May be Barnum did not know that there about a billion Indians

deepsa52 · #**135** 14th July 2008, 10:44 AM

July 11 (Bloomberg) -- India's industrial production grew at the slowest pace in more than six years and Standard & Poor's said it may cut the nation's credit rating to junk if the economy deteriorates further.

July 11 (Bloomberg) -- The U.S. would retain its top AAA credit ratings even if the government was forced to rescue mortgage lenders Fannie Mae and Freddie Mac, according to Moody's Investors Service Inc. and Standard & Poor's.

U.S. debt is ``well within'' the guidelines for an Aaa rating, said Steven Hess, vice president and senior credit officer at Moody's in New York. The U.S.'s AAA rating is not at risk, said Nikola Swann, S&P's primary U.S. credit analyst.

praveen taneja · #**136** 16th July 2008, 05:25 PM

yes watever they do grow or down they are AAA but v who are going on top rating down wow

deepsa52 · #**137** 31st July 2008, 03:08 AM

The U.S. is pulling out all the stops here to make sure we don't have a terrible downturn or a collapse in the financial system,'' said Allen Sinai, chief global economist at Decision Economics in Boston. ``There isn't anything else the Federal Reserve can do but to keep pumping liquidity into the system.''
http://www.bloomberg.com/apps/news?p...KAw&refer=home

Starting on Aug. 11, the Fed will give banks the option of bidding on 84-day cash loans from the Fed, besides the 28-day loans now available. Specifically, the Fed will conduct biweekly auctions. They will alternate between making available $75 billion in 28-day loans and $25 billion in 84-day loans. The steps expand a program started in December aimed at helping banks overcome their credit problems so that they can keep lending to customers.

The European Central Bank and the Swiss National Bank have informed the Fed that they also will make available to their banks similar 84-day cash loans. To help on this front, the Fed also boosted its credit line with the ECB to $55 billion from $50 billion.
http://biz.*****.com/ap/080730/fed_credit_crunch.html

The best way to rob a bank is to own it - and loans that never need to be repaid are a cause for celebration for the banks.

deepsa52 · #**138** 31st July 2008, 05:01 AM

This person runs a gold money site, but apart from that it provides a very simple explanation ( and the graph is interesting!! ) for those who are not all that familiar with macro economics. In short, the American banking system is almost insolvent. Needless to say, it affects every country since dollar is the reserve currency.

http://goldmoney.com/en/commentary.php#current

The Following User Says Thank You to deepsa52 For This Useful Post:
praveen taneja (31st July 2008)