India on the brink...

[superfrank]

India on the brink of its own financial crisis
http://www.theguardian.com/business/eco ... ck-markets

India's financial woes are rapidly approaching the critical stage. The rupee has depreciated by 44% in the past two years and hit a record low against the US dollar on Monday. The stock market is plunging, bond yields are nudging 10% and capital is flooding out of the country.

'never did buy that India story!

[Euler]

We miss you superfrank!

I read a document recently on India after hearing that Buffett had pulled out.

Basically the business operating in India were saying that 'local issues' were getting in the way of them doing any sensible sort of business there.

They cited, local planning, legislation and law making wasn't fit for investment.

Basically I think they were saying the system was corrupt, but stopped short of actually saying that.

[superfrank]

i kinda decided i was talking to myself posting about 'alternative' big picture economics on here, and cos sports trading is just a sideline now. but i still have soft spot for the BA forum!

the correlation between corruption and poor economic performance is well documented and holds true. unfortunately, India, like many other countries, has a culture of corruption that is hard to break.

[kelpie]

Bit more than corruption, in my opinion.

China is one of the most corrupt places on earth - no growth retardation there.

Commerical savvy, simple and powerful decisions, those are just as key.

Have you ever met an Indian who kept things simple?

[steven1976]

Corruption is very hard to break. You get pulled into the cycle with very few options and therefore become part of the problem and it becomes a full society problem which then becomes the norm. As an outsider it's never easy to accept and therefore it's difficult to develop in them environments.

[Euler]

Negative stories are gaining momentum: -

India faces 'painful and protracted slowdown

http://www.bbc.co.uk/news/23894164

[andyfuller]

Quite a different view given this morning on the Wake Up To Money radio program. But agree the negative stories are building up.

About half way in:

http://www.bbc.co.uk/programmes/b0070lr5