http://www.ndtv.com/convergence/ndtv/video/video.aspx?id=41633
With the possible exception of Indira Gandhi, this combination of educated idiots are the most disastorous fnancial managers India ever had.
Shourie is right about how these goons have basically bullied banks to lend to govenment - well actually middlemen in Sonia's Loot India Schemes. Chidambaram sings lullabies while the Chinese are taking over the world!!!
6 comments:
Today when systemic failures stand exposed in American financial system, Arun Shourie and Drummer Gupta sound least convincing when they criticize YV Reddy, the man who saved us from similar mess.
Are they telling us not to draw any lessons from America's troubles? Arun talks about continuing the real estate bubble, which would have landed Indian economy in utter mess. Gurumurthy looks at these issues very differently and he has been proven right.
Sadly, BJP's economic policies sound like they are dictated by stock market speculators from Vadodara, Surat and Ahmedabad.
@ shankar
There was never (and there is not even now) a real estate BUBBLE in India. There was a boom - these are quantitatively different. The reason for there being no bubble? simply two factors
1- Inherent conservatism of Indian bankers
2- High black money collateral on the part of home buyers which means no "zero down, teaser interest" type loans. Note - such loans (therefore inefficient capital flows) are the basis of bubbles.
What Shourie has talked about here is the lack of liquidity in India's real economy - not in an asset bubble! The source of that ill-liquidity is the government's fiscal policy (specifically those sick oil bonds) not waste capital making NINJA loans to people that cannot pay.
I have followed Gurumurthy's economic thinking for a long time - I have no clue where he ever talked against home ownership in India (bubbles or no bubbles). Perhaps you can point me to an anlysis where he does?
Actually - the VIGIL forum online (that sterling Chennai based organization) has a recording of a speech by Gurumurthy where he has criticized the likes of Jagdish Bhagwati for proposing that Indian policy make people spend on consumer durables and not spend on - drum roll ....houses! Let's do a bit of reading shall we!
As for BJP's policy being dictated by stock market speculators from Vadodara, Surat and Ahmedabad (ouch that anti Gujarati animus) - well that may or may not be true. But it sure is better than being dictated by Sonia!!!
to call manmohan and chidambaram as idiots is to completely be off the mark. they are cunning people with malicious intentions.
please read about their previous exploits here:
http://vittam.blogspot.com/2008/04/pay-commission-recommendations.html
don't attribute to ignorance what can be explained by malice.
" don't attribute to ignorance what can be explained by malice."
Absolutely right Shrivastha.
Click below & read it slowly digesting every bit.Galling & appalling revelation of super pm & all the politicians' plus kollywood chicanery.
http://newstodaynet.com/col.php?section=20&catid=30
The changing stripes
By Sri.T.R.Jawahar
@GW,
Finally I am hearing business reporters gathering the courage to call Greenspan "incompetent". For long, they were mesmerized by his word play and pointless future casts.
If house prices rise faster than incomes, it clearly is not sustainable. As simple as that. The central bank has an obligation to discourage it. This happened in India and the RBI acted promptly.
You tell me YV Reddy was wrong and Greenspan was right? You don't think we have anything to learn from the current credit crisis?
As for Gurumurthy, he has been arguing that low interest rates were responsible for serious drop in individual savings in the US at a time when corporations got richer, clearly indicating who benefits from low interest rates. Unfortunately, most of us cannot think beyond the stock market.
This article in today's NY Times addresses your argument on home ownership:
Building Flawed American Dreams
Henry G. Cisneros spent years helping low-income families buy homes, part of a broad national trend with dire consequences.
As the Clinton administration’s top housing official in the mid-1990s, Mr. Cisneros loosened mortgage restrictions so first-time buyers could qualify for loans they could never get before.
http://www.nytimes.com/2008/10/19/business/19cisneros.html?_r=1&hp&oref=slogin
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