FII's entered indian markets aruond April & took everyone by surprise.They are however, now feeling the heat as retail & HN investors are still scared of valuation & wounds of 2008 January have not healed as yet.The selling by domestic institutions is another problem for FII who now finds exit tough.They are thus driving sensex further with low volumes to finally trap small investors & may be able to do so by ramping market to 18000 level post budget.The economosts & analysts are on their payroll & already talking of new bull run.Investors thus need to be careful & be guided by ground reality which is scary with strong chances of drought that may contract GDP by 2-3 %
Vyas is wrong, if deficit financing is not of concern,then why put taxes, burden minimum and print currency for the needs. Congress in order to win election put on tax payers a burden of Rs.1 lac crore by way of doubling the salaries of govt. staff and subsidies etc., in recession, likely tax collection is negative, therefore one can talk all this irrelevent to befool public.
Re: Deficit financing
by MS on Jun 27, 2009 12:01 PM
agree. keynesian dipweed ecutnomists will always find NO problems in taxing,runnind deficits,impoverising the unvoting,unborn future generations so that the current generation can live it up. learn something form the selfish boomer generation.
