March 27, 2009
Gradually I can see signs of
the global financial crisis downward spiral being arrested, bottoming out and
maybe some mild signals of recovery in some sectors. India is perhaps best
poised to ride out the storm. US, too, with the large banks cleaning up their
acts, Govt buying up toxic assets, China assuring that it will continue
buying US treasury bills, of which it already owns about $ 1 tr, and China
asking US to keep the dollar stable so that its investments in US
treasuries do not depreciate, is perhaps seeing signs of deceleration in
its economic freefall. This is certainly good news for the world. Last month
retail spending and housing starts in US have seen some mild upward movement.
We are living in the age of air
conditioned economies with all detailed online macro economic and other
information flows. This has facilitated fine-tuning of a plethora of economic
parameters. With the help of all governments, regulators, central banks, fiscal
measures, taxes, currency and forex management, interest rates, economies are
being surgically operated upon. What is happening that entire economies are
being put on heart lung machines and ventilators in ICUs.
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