Bearing the Bears

Now when the bears are attacking, everyone's getting beaten. Every meaning of "beaten" holds true here. What the not so common investor would be realizing, thinking and anticipating is this:

The bubble has burst, no second thoughts on that. Traders are dying, some of them literally attempting suicides. The Indian Sensex and the Nifty have gone down by almost 50% from their year highs. This is "credited" to the FIIs going out, booking losses, profits and despair.

Scientists and artists have love and marvel symmetry. Investors do not. Traders neither. They expect the rise, and never the fall. (Well, some of they do, and they earn, but that is not the general trend- no one enjoys a falling market). The fall of Bear Stearns was just the tip of the iceberg. Freddy and Fannie, Lehman Brothers, AIG, Merill Lynch - all of owned the muscle in the financial town, and suddenly succumbed to a myalgia caused by their own incessant and idiotic risk taking coupled by a simultaneously growing mistrust amongst bankers who are realizing "no lending" is better than lending sometimes.

"Liquidity" and "Crunch" are two inseparable words now. The US treasury is stepping in to bail out the spoiled brats who did not know how to manage their funds. That is in itself a calculative risk. Back home, when P. Chidambaram is saying India is secure and is on her way up like never before, no one is actually listening. There are some last men standing, but they have always been standing.

Now if the US has to really turn things around, it would look to create more jobs for its citizens. It has to tax those outsourcing jobs out of the USA harder. It would not be very capitalistic, but capitalism does not seem to be working at this point of time. There is an inertia that is being seen by the common investor. Now if the US really pressurizes those "outsourcers" then that would hit the Indian IT industry. That is bound to happen. So the focus shifts to India. Well, when that happens, the whole world will not be watching India, but that's another story. Now if the Indian IT industry does not want to take that hit, it has to start moving away from the dollar. Europe seems to be a potential destination.

Now what I am trying to prove is that in whatever has happened, whatever is happening and whatever will happen, the robust Indian Economy has never lost, is not losing, will not lose given the strong corporate and financial management of the market drivers and a capable Finance Minster in P. Chidambaram. Hell, the guy has done whatever he could in such a crisis.