Wednesday, May 16, 2012

recession, frustration, depression

Investors, Traders and FII all looked puzzled at same time. What Indian economy is witnessing for the last three or four years is certainly not rosy picture of growth.
Oil prices are not cooling off, Inflection is reluctantly high, FII is not obliging anymore, retail trader is fearsome, RBI was forced to cut 50 basic paisa in rate now they are clueless about depreciation of Indian Currency. What will happen? no one knows.
I tried to draw a link between UPA government tenure and our economy data and find out the following
In the last 8 years (May 13, 2004 to May 13, 2012) of UPA government Indian currency has depreciated the most, touching new low yesterday.
Current account is under pressur, in 2004 it was positive for last three years, since then negative for the last 7 years.
In 2004 India's current account was positive now it is all time low. What happen in last eight years?
This is one fig we can say UPA government looks good.
At the time UPA government sworn in center, we were growing at the rate of more than 10% now it has been reduced to just above 6%
Just have a look at India balance of trade chart since 2004, what happen I do not know as I need to understand more before commenting any further.
I have not higher level understanding of economy, I am a occasional trader and long term investor. I know one thing, 50% of my shares are trading at the level it was on the day when UPA won second term. Still 2 years to go......!!@#$%^&*

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