Why arresting inflation is so necessary for the govt.? Coz if inflation keeps going up, RBI would not lower bank rates means costlier bank loans will persist> people ll wait buying homes in the hope of EMIs coming down in future, but they wont as far as there is sustained price rise. Less home loans means realty sector hit. So builder wont get money frm buyer n hence ll stop construction. Once this is done manufacturing sector ll b hit. Headache for lord ambanies n tatas.... Companies maal would lie idle in stores as people ll not buy luxury goods like tvs, acs, cars in hope of their prices cming down in near future. Means intrnational rating agencies ll say oh indian manufacturing is down so economy ll not function well n hence they ll lower our ratings. Foreign investors who act more on assumptions ll stop investing in our share market . So BSE n NSE too down. People like u n me ll lose their money. ll further stop buying goods. Bad for companies> Their profits down> they ll cut short their staff> unemployment> means oveall economy ll seem like sinking> It may finally lead to recession....means Total Collapse :((
Posted on: Thu, 03 Jul 2014 05:17:25 +0000
Trending Topics
Recently Viewed Topics
© 2015