Tuesday, August 09, 2011

Following the 315.69 points or 1.82% fall in the Sensex on Monday today's Hindustan Times has gone all out to reassure investors that India is safe even if the rest of the world suffers a financial meltdown. An article," Ignore financial flatulence, work the real economy ", angrily denounces the sell off in the east because of the financial problems of rich countries. Our most revered Finance Minister is quoted as saying," As India's growth story is intact and its fundamentals strong, we are in a better position than many other nations to manage the challenge." The Chief Economic advisor, Kaushik Basu said,".....in the medium-to-long run, there will be global capital in search of safe haven, we can become the safe haven that a lot of global capital will be seeking." Of course, the great sage, Montek Singh Ahluwalia has shared his wisdom," I don't expect to see a big negative impact but we have to watch the situation", which, like the sayings of all great sages, is beyond us ordinary folks. However, we never hear from the man the Congress-footlicking press has constantly told us is the greatest economist since Adam Smith. In his 7 years in the post our most revered Prime Minister has always talked down to us in general terms saying that everything will be alright if we trusted him. Sadly everything is not alright and we want him to analyse for us in great detail what the economic situation is at present, what dangers could hurt us in the future and what solutions he recommends. We want charts, graphs, maths, the whole enchilada. We may not understand the details but economists will and we will read what they say. So, what say. Speak as a man or cling on to kursi.

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