Mother of all FEARS

With continuous  slowdown in economic growth in most of the sectors including mining, power, construction, etc due to continuous rising interest rates and poor fiscal policy  to curb the inflation demon has failed. The real worry is rising commodity prices caused due to speculation Eg : Silver traded in range of 50k - 75k in this quarter showing fluctuation of 50% and many such other commodities, as Micheal Douglas rightly said "The mother of all evil is speculation and leverage debt.", don't u think the govts fiscal policy stands responsible for all of this.


Rising operating cost has reduced the profits of the cos followed by the slowdown in economic growth is a worry for all of us. Rising fuel prices, I wish Mumbai should be Venice where in I could have bought a boat for myself, off course not a motor boat. It seems to me the growth stage is gradually migrating to decline sell your stocks if u hold any. 


What our fiscal policy can do is raise the rates more by 50bps and invite one more worry. I wish I could suggest some alternative to this. As of now when I close my eyes I hear the sound of worry winds (shhhvvvvvvv shhhvvvvvv u see) arriving in 2 yrs the next financial crises stands close just because the previous one was fixed by printing dollars as decided in G20 summit and the value of those printed notes have fallen with rising inflation,  and now we need to print few more triggered by financial crises. We need some innovation on this one hope we fix this Keynesian economics some day.


KHP
ecomaniac