Chillin' out till it needs to be funded
They say Europe wasn’t lost in a day (In the times of Caesar, it was said: Rome wasn’t built in a day) and now that the hounds had to wait for a year to get to shoot some Euro rabbit, big game is definitely hungry identifying the Spanish banks’ weaknesses and Portugal’s banks strengths being nullified by shoddy government. Then comes that German and French bonds must now trade at bigger discounts and higher yields as the markets find a new redenomination for the “German” Euro ( it might as well have been the Marks : | Ackerman)
Well, India’s future agenda is with us again and sadly it is about missing the bus and losing the plot. SLR was reduced ( much in line with our suggestion of two years and more) at a self induced inflection media pressed as an emergency and twin objective of capping realistic GDP targets to less than 9% in a simple December announcement of the Q2 GDP. The best Auto sale till October have engendered single digit sectoral growth so we know lifestyle consumption growth is capped. The other push from and thru the media of course is that India is not good for hot money. By Lord and by Dukakis, that just does daffy-ducks the growth of the Sensex vis a vis other currencies and any reinvention of India’s weight in the global markets leaving them on a decade long calendar rather than that of the current government.
That is how if you can see it, you can get in on the India or the Europe bandwagon for the longer term. If you need the capacity to make money from the financial markets in wild swings, consider China, and say didn’t I hear France is joining the new Greater Sino republic ? The current 6 quarter break in India’s SLR will stick for three years at least, just to keep an ounce of domestic money in the mix, and MNC banks will get a more open market earlier than the Walmarts in the new dispensation already written in policy at government approved GDP growth rates.
THIS WILL BE PARTAKEN BY HITHERTHO European Banks like HSBC and transferred into gains for Africa and maybe US as they find new homes. China will remain an unstable growth pod with larger IPO issuance and India will recede to “Financial markets of yore” niche in the global markets at a tugging 5% global weight beaten by a dull aching cash stiff from Eire, Spain, Greece Ireland and Taiwan. Korea, China and Brazil will be the new NATO till the next cycle breaks. Where’s Europe in all this? They will be drinking the beer and watching with joy of having survived if at home or colonising the new Corporations if away. Wall street is back with a vengeance in 2011.
P.S. Daffyducks is a recognised verb in our dispensation