Bailouts began, Stock markets slumped down, Countries are in panic.
The bubble of bubbles is getting on the edge to burst. This time the effects are evenly felt throughout the countries. No country seems to be safer.
First the European Union followed by the US and floored by China. This is how it is expected to unfold in a big scale.
Bailouts extended the lifetime of the European Union economy little bit. European Union’s slowdown extends the American economy’s lifetime. China’s foreign reserves helped the Chinese to extend their lifetime.
It implies each country’s economy is surviving of the collapse because of the slowdown of the other.
But how long?
Already the panic catches up in every stock market in the world as the slowdown worried the investors.. Currencies are weakening. Meanwhile the dead bottom price slump of the crude oil put a nail in the disintegrating economy.
The so called super powers (US, Russia) are in midst of an complete turmoil. Even the oil producing countries are also affected by the decisions of Saudi and OPEC.
The collapse is inevitable and whether these countries could survive through the collapse is a bigger question.
Indian economy and currency are also suffering due to the slowdown in global economy. Despite that Indian economy is expected to have a little to average impact from the collapse. India's closed financial infrastructure thus have some potential benefits and safety in such situations. But the recession would severely affect the Indians in terms of jobs. Especially the jobs provided by IT and automobile industries expected to be slashed by 2 millions. Hope India manages the situation better and make use of the opportunity to promote growth and employment. We can expect a double digit percentage of growth in the GDP if India play the cards correctly.
0 comments:
Post a comment