hedonist Said:
6% Growth?
Really? kisne bola?
Then why is the market going up?
This is gonna be the worst drought in 50 years, but here people are buying as if India is rocking, despite a looming 6.8% fiscal deficit, the fallout of the swine flu to yet unravel, and a caution on a rating downgrade.
So why the buying?
There are 2 reasons:
1) If you want to invest your money today with TOTAL safety, and get a return of only 7% after tax, where do u invest?
Ans:- NOWHERE, cuz even a bank deposit giving 8% will boil down to 5.5% after tax.
So where do u put yr money???
Indian Govt tells you that in order to survive and keep pace with an average rate of inflation of 8%, gambling in the stock markets is compulsory, to ensure u have a chance to make 7% or more.
And what if as usual, the molly-coddled FII's decide to sell off someday, and make a bakra out of all of us?
Who cares boss, you can rot, Govt is busy playing their own games!
2)P Notes were in a limited ban and phased out by October 2007.
However, unknown to many, our darling Govt conveniently permitted P-Notes AGAIN by October 2008 to appease hungry foreigners, frothing at the mouth to make a fast buck at our expense.
Genuine FII's painstakingly fill in application forms as Indian authorities thoroughly check them out, to ensure they are sound people.
But apna VIP P-Note investors with short-term money from unknown sources do not even have to fill in a medical examination form. Their broker fills it out & certifies their bonafides!
Having seen the Indian election results, these dudes have now come back to India to add to their booty - by playing around with their gambling money at our cost.
P notes played a pivotal role in the over hyped rise in Indian markets till 2007,& in the current rise. When global events in such a fragile scenario, frighten the owners of Short Term capital, we're doomed to see a replay of earlier panic sell-offs; Indians will never make money, think about it, how many actually have?
Posted On 8/18/2009 4:08:04 PM