17 September, 2008

Hands up by the Big C's -!!!!!

Well the markets r down ....fingers crossed by the most corporates ..... not to mention the policy makers !!!!

The big IB banks ( Lehman.Merill) held their hands high in the air .....looking out for someone to hold them ,and sadly the fate of the potential buyers was also confined to market chores , must salute the guts to buy ML at this point of time by the BOA, whose results can be seen at a latter point of time ( hopefully to see them on +ve Side of the balance sheet).on the other hand ,AIG rescued by Fed with 85 $ billion ,glad that Govt came to their rescue ,reason beign AIG is a public Ltd(80% owned by U.S. Government...)

But what if the same situation happens here in India ,what if the IB's of our nation go thru what the 2 US IB's had been thru, will the Govt come to their Rescue(guess not!),considering the Debts which the Govt owes to the IMF and the Tiny Forex Reserve base we have ... and the recent Natural Disasters

But one thing which i guess should be given a serious look is how UAE's GDP grew by 5.2% though they r players in the oil -Sector industry, non-oil sector grew by 16.8 percent, touching $127.4 billion. This accounted for 64.1 percent of the total GDP during 2007.However,
continued rise in oil prices contributed substantially to the country's revenues and eventual surplus budget.

Hope our nations portfolio is diversified in the areas which have be ignored.....to avert such economic turmoil happening in USA at present ....

High times to shift the gears to new sectors which are untapped for decades!!!!