Comments on: Policy Parallels: Eurozone and India

By: the unlettered tellurian

the unlettered tellurian — Sat, 17 Jan 2009 14:30:21 +0000

It is not just the real estate and the auto sectors that are hurting…more are…and they’ll all start revealing their problems in a few months. Most of them had actively pushed their respective “real” markets too much on paper. Growth figures for India surely needs to be re-evaluated… even the currently suggested figures seems a bit on the higher side. There is too much denial in the market.

As far as the Satyam case is concerned, it should not come as a surprise for those who are in the know about the poor governance in many Indian firms. It’s sad but true, and a lot of the foreign business partners (especially American) are well aware of it. They are just trying to distance themselves from the ugly incident. The private sector in India has a lot in common with the Indian public sector.

By: Amit Kumar

Amit Kumar — Fri, 16 Jan 2009 08:09:27 +0000

Actually, I would like to take Manshu’s point a bit further… kindly take a look at my post on Mostly Economics… the banks are minting money (Axis, HDFC bank results have been stupendous in 3QFY09)… it is just that banks are not passing on the benefits of lower interest rates on to the real sectors (by keeping high their prime lending rates, bank rates)… what can be done about this is the question…

http://mostlyeconomics.wordpress.com/2009/01/16/assorted-links-398/

By: Manshu

Manshu — Tue, 13 Jan 2009 21:20:14 +0000

What makes you think the banking situation is not good? The Indian banks didn’t have any exposure to sub-prime or derivatives on those?

The real estate sector is surely hurting and so is the auto sector.

I wasn’t aware of any dangers the banks faced?