Comments on: Amazing Globalization: How defaulters in US are fueling the Indian Economy http://www.theindianblogger.com/interesting/amazing-globalization-how-defaulters-in-us-are-fueling-the-indian-economy/ Views of an Indian blogger on life in India, Internet & world ! Thu, 05 Jan 2012 17:47:41 +0000 hourly 1 http://wordpress.org/?v=3.3 By: Eklavya http://www.theindianblogger.com/interesting/amazing-globalization-how-defaulters-in-us-are-fueling-the-indian-economy/comment-page-1/#comment-1989 Eklavya Mon, 26 Jan 2009 13:38:18 +0000 http://www.theindianblogger.com/2007/10/17/amazing-globalization-how-defaulters-in-us-are-fueling-the-indian-economy/#comment-1989 @Shashank You are giving opinion on an article which I wrote 15 months ago (17th Oct, 2007). Since then a lot of things have changed and it is futile comparing two articles written in different circumstances. Both articles are true in their respective time frame and comparing them will confuse you more. @Shashank

You are giving opinion on an article which I wrote 15 months ago (17th Oct, 2007). Since then a lot of things have changed and it is futile comparing two articles written in different circumstances. Both articles are true in their respective time frame and comparing them will confuse you more.

]]> By: shashank shekhar http://www.theindianblogger.com/interesting/amazing-globalization-how-defaulters-in-us-are-fueling-the-indian-economy/comment-page-1/#comment-1972 shashank shekhar Thu, 22 Jan 2009 11:37:27 +0000 http://www.theindianblogger.com/2007/10/17/amazing-globalization-how-defaulters-in-us-are-fueling-the-indian-economy/#comment-1972 Well, when the sub-prime crisis worsened, the investors started pulling out their money from indian stocks to meet liabilities at home. Right? Why sub-prime crisis worsened is because there were some people(defaulters) who took loans and were unable to repay it. So to compensate the losses which these investors suffered in US, they started pulling out their money from indian stocks to meet liabilities at home. This is not fuelling our economy but adversely affecting it. This is the sole reason why sensex crashed from 21000 to 8000 just in few months. Well, when the sub-prime crisis worsened, the investors started pulling out their money from indian stocks to meet liabilities at home. Right? Why sub-prime crisis worsened is because there were some people(defaulters) who took loans and were unable to repay it. So to compensate the losses which these investors suffered in US, they started pulling out their money from indian stocks to meet liabilities at home. This is not fuelling our economy but adversely affecting it. This is the sole reason why sensex crashed from 21000 to 8000 just in few months.

]]> By: Eklavya http://www.theindianblogger.com/interesting/amazing-globalization-how-defaulters-in-us-are-fueling-the-indian-economy/comment-page-1/#comment-1969 Eklavya Wed, 21 Jan 2009 15:40:35 +0000 http://www.theindianblogger.com/2007/10/17/amazing-globalization-how-defaulters-in-us-are-fueling-the-indian-economy/#comment-1969 @ Shashank shekhar No I don't think there is any contradiction in these two posts. If you read them carefully, you will find that at the point when FIIs were heavily buying Indian Stocks, they were not facing a serious credit crunch problem at home. The crisis was looming large at them but not in such dangerous proportion. They were still in a position to make decision based on lower/higher rate of return. However, as the sub-prime crisis deepened, their investments in US started turning into losses and there was no option left but to withdraw money from other markets (like India and meet liabilities at home). I hope this will clear your doubts. @ Shashank shekhar

No I don’t think there is any contradiction in these two posts. If you read them carefully, you will find that at the point when FIIs were heavily buying Indian Stocks, they were not facing a serious credit crunch problem at home. The crisis was looming large at them but not in such dangerous proportion. They were still in a position to make decision based on lower/higher rate of return. However, as the sub-prime crisis deepened, their investments in US started turning into losses and there was no option left but to withdraw money from other markets (like India and meet liabilities at home). I hope this will clear your doubts.

]]> By: shashank shekhar http://www.theindianblogger.com/interesting/amazing-globalization-how-defaulters-in-us-are-fueling-the-indian-economy/comment-page-1/#comment-1967 shashank shekhar Wed, 21 Jan 2009 12:14:50 +0000 http://www.theindianblogger.com/2007/10/17/amazing-globalization-how-defaulters-in-us-are-fueling-the-indian-economy/#comment-1967 In this blog/article you have described how defaulters are fuelling indian economy. In one way i can say US went in recession because of these defaulters only. These defaulters were the people who took sub prime loans but were not able to repay leading to backrupcy of many financial institutions and thus meltdown of US economy. But in one of your blogs "Reasons behind Recession", you described how indian economy was affected by US recession. I am just pasting a few lines from your blog ---------------- "For the last two years, our stock market was touching new heights thanks to heavy investments by Foreign Institutional Investors (FIIs). However, when the parent companies of these investors (based mainly in US and Europe) found themselves in a severe credit crunch as a result of sub-prime mess, the only option left with these investors was to withdraw their money from Indian Stock Markets to meet liabilities at home. FIIs were the main buyers of Indian Stocks and their exit from the market is certain to wreak havoc in the market".---------- Here you are telling that to meet the liabilities at home FIIs are withdrawing money from our stocks. Don't you think in both of these blogs you have talked just the opposite. In this blog/article you have described how defaulters are fuelling indian economy. In one way i can say US went in recession because of these defaulters only. These defaulters were the people who took sub prime loans but were not able to repay leading to backrupcy of many financial institutions and thus meltdown of US economy. But in one of your blogs “Reasons behind Recession”, you described how indian economy was affected by US recession. I am just pasting a few lines from your blog —————-
“For the last two years, our stock market was touching new heights thanks to heavy investments by Foreign Institutional Investors (FIIs). However, when the parent companies of these investors (based mainly in US and Europe) found themselves in a severe credit crunch as a result of sub-prime mess, the only option left with these investors was to withdraw their money from Indian Stock Markets to meet liabilities at home. FIIs were the main buyers of Indian Stocks and their exit from the market is certain to wreak havoc in the market”.———-
Here you are telling that to meet the liabilities at home FIIs are withdrawing money from our stocks.
Don’t you think in both of these blogs you have talked just the opposite.

]]> By: Effect of fluctuation on Indian stock market http://www.theindianblogger.com/interesting/amazing-globalization-how-defaulters-in-us-are-fueling-the-indian-economy/comment-page-1/#comment-624 Effect of fluctuation on Indian stock market Mon, 22 Oct 2007 08:39:38 +0000 http://www.theindianblogger.com/2007/10/17/amazing-globalization-how-defaulters-in-us-are-fueling-the-indian-economy/#comment-624 [...] you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!In my last article I wrote about the reason behind booming stock market in India. When I wrote that article ( only a [...] [...] you’re new here, you may want to subscribe to my RSS feed. Thanks for visiting!In my last article I wrote about the reason behind booming stock market in India. When I wrote that article ( only a [...]

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