News report Stock markets accross the world are set to crash by 50% or more in 2015, We are in a Gigantic Financial Asset Bubble warns marc faber (International fund manager) billion dollar investor Warren Buffet is rumoured to be preparing for a crash as well, the Warren Buffet indicator also known as the Total market cap to GDP ratio is breaching sell alert status and a collapse may happen at any moment. Mark Spitznagel (Who first predicted the 2008 Lehman Brothers Crash) says We have no right to be surprised by a severe imminent stock market crash, infact we must absolutely expect it anytime soon Why R. Rajan is not cutting rates in India: Inspite of Low inflation, negative IIP, comfortable CAD, Rajan is not cutting interest rate due to one simple reason. India has witnessed inflows in equity to the tune of Rs 60K crores in 2014whereas in debt it has witneseed inflows of Rs1.60L crores. This high inflow in debt is due to higher interest rate India offers. If a rate cut happens in India & if Fed raises interest rate in US then there will be huge flight of capital from India to US from the debt segment thus putting enormous pressure on Rupee. Already without cutting rates USDINR has climbed to 63.50, imagine if there is 20-25 billion outflow from debt then USDINR may test 69-70 levels again which will upset the Govt plans in big way. Lets see how thing fan out in coming 1-4 months.
Posted on: Sun, 04 Jan 2015 17:37:11 +0000