Just some interesting stats

Indian economy overall has about 36 percent savings - households have an average of 28 percent savings and 6 percent is corporate savings - Half of the household savings about 14 percent of the Trillion dollar economy gets pumped into real estate and the other half into material investments! - Source a discussion on CNBC!

Indian Buffet!

Markets are like women -- always commanding, mysterious, unpredictable and volatile. That's really a good one from Rakesh Jhunjhunwala.

US Announces Plan to Delay Foreclosures

Are these steps really useful!

30 percent of homeowners who bought in the last two years owe more on their mortgages than their houses are currently worth..

Private economists are forecasting that the number of foreclosures
could soar to 1 million this year and next, about double the 2007 rate.

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Threads to think along! Indian Economy!

India's $5.2 Trillion Economy by PPP, is heading for another budget..

- Indian economy is 41% industrial in nature
- Inflation is mostly because of supply side constraints. Its not logical to try to curb it by introducing demand side bumpers like raising interest rates, making less funds available to the industry
- Tax net needs to be widened.
- The way to improve the economic status of the India's rural segments is to attract investments there
- Farmer productivity needs to improve. There's not a single ITI in India for teaching the best ways of Farming

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Nations with highest external debt!

India, with $155 billion, 16.8 % of economy, you'd think should be highest. But there's US at staggering $12.249 trillion, UK at $8.280 trillion, Germany at $3.904 trillion. Read on here..

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Who cares for the dollar? Not the Fed, surely!

Fundamental economics tells us that interest rate cut leads to two consequences.

First,
it acts as a disincentive to savings and it simultaneously encourages
spending. The second consequence is far more complex. It moves money
from the hands of individuals to the corporates through two routes:
one, as stated above, it encourages spending in the hands of
individuals -- which means more income to corporates; and, two, it acts
as an dampener for interest-related savings, but encourages investments
into stock markets.

Before one proceeds to critically analyse the Fed,
it is important to note its significance. It is in effect the central
bank of the world. Naturally, it needs to be put under maximum global
scrutiny. Despite such overwhelming requirement there is an important
difference between the Fed and the other central banks. If most of the
central banks are state owned or government controlled, the Fed is an
exception to this fundamental rule.

Readers
may be surprised to note that the US Fed system is neither controlled
by the US government nor is it a private body, subject to oversight by
a Regulator. Rather, as some analyst put it so succinctly, it is a
cartel of private banks. And it is structured in such a manner that its
functioning is absolutely independent and secret -- even the US
President or the US Congress cannot interfere in its working.

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