On Friday of last week the Sensex collapsed by over 1000 points to below 9000. It is hard to comprehend that it had reached over 21000 in January of this year. For the last few years it has been obvious that a gigantic bubble had been built up in the stock and housing markets. Low quality flats in Delhi were being priced at over Rs. 10 million and we were being told that prices would rise even further. Only about 12% of Indians pay income tax which starts at a paltry Rs. 1,20,000 per year. At this level of income it would be hard for a single person to pay rent and buy food let alone pay for a mortgage. Properties in India are sold on a 50:50 basis that is half the total price is paid by cheque or 'white money' and the other half is paid in cash or 'black money'. This is because of extortionate rates of stamp duty and registration taxes. It follows that there would be very few people able to afford Rs. 5 million in cash to buy properties in major cities and towns. Clearly most of it was speculation and a few genuine buyers were taken in and are now ruing there impulse. Our great Prime Minister has claimed that he warned world leaders about the financial crisis at least 18 months ago. Pity he did not warn our great Finance Minister or the Indian people who are paying for his food and living. The free loading press keeps banging on about what a great economist he is. Only Indians cannot see it.