We agree with Rajan, India is already passing with recession on manufacturing sector, few orders from abroad as well as condition of industry within is also not good due to govt. policies. Modi policy is not yielding good results for small and medium size industries, they are facing daily hindrance by govt. servants to mint money.
Raghuram was not RBI gov. then and he had expressed his concern about the menace of CDOs few years ahead of 2008 melt down precisely for the reason that markets went upside down. Even at that time so called other global economists made a joke of him. Not that those folks were idiots, just that they were part of vested interest groups who wanted the bubble to expand as much as possible before it bursts. Same is happening now... possible burst this time? May be 2017.
All around the world trillions of dollars of ilagal money is stashed playing its neagative role. All these are symptoms good enough to say that Great Depretion is round the corner.
It is great pitty on the comment made by RaghuRajan RBI Governor in UK. He does not seem to a good economist, he commented in the past that Rupee will further go down against US$ as it is costly. He commented about below normal monsoon while he was speaking on RBI monetary policy. He should concentrate on his work rather commenting on depression in 1930 and now he does not understand the present economy, he should go if does not understand this and world rather he should contribute positively to boost economy so that world should come out of the problem if any
