Godlike Productions - Discussion Forum
Users Online Now: 2,254 (Who's On?)Visitors Today: 441,341
Pageviews Today: 1,341,043Threads Today: 870Posts Today: 17,738
09:25 PM


Rate this Thread

Absolute BS Crap Reasonable Nice Amazing
 

The U.S. Federal Reserve's plan to reduce monthly bond purchases is exposing the deep-seated fragility of India's economy

 
Uncle Fuck Stick
Offer Upgrade

User ID: 11231658
United States
08/19/2013 10:12 PM

Report Abusive Post
Report Copyright Violation
The U.S. Federal Reserve's plan to reduce monthly bond purchases is exposing the deep-seated fragility of India's economy
[link to online.wsj.com]
The U.S. Federal Reserve's plan to reduce monthly bond purchases is exposing the deep-seated fragility of India's economy, unnerving investors and underscoring the risks of emerging markets at a time of rising global interest rates.

India's stock market tumbled 1.6% Monday, adding to a 4% decline Friday, and the rupee hit a fresh low against the dollar. Government-bond prices slumped, sending yields sharply higher.


China, India and Brazil are disappointing investors. Manufacturing and export growth have slowed in all three countries. Why are stocks from developing countries doing better than those from the major developing economies? WSJ's Jason Bellini has #TheShortAnswer. Image: Getty

Related

Interactive: Track Global Debt Levels
Asia Goes on a Debt Binge as Much of World Sobers Up 6/24/13
Emerging World Loses Growth Lead 8/12/13
The malaise in India is the latest global ripple effect from a shift being considered at the U.S. central bank, following nearly five years of exceptional policy support for the American economy and financial markets.

During the era of low rates that followed the global recession, developing nations such as India, Indonesia and Thailand had no trouble attracting capital to boost growth. Imports soared as Asian consumers ran up debt to fuel purchases.

But as their export engines have sputtered, because of China's slowing growth and uneven demand in the U.S. and Europe, these economies have started to run large current-account deficits, which occur when imports outweigh exports. As investors begin demanding higher returns for taking on risk, nations with large economic imbalances are getting punished.

"These economies definitely look suddenly a lot less impressive," said Frederic Neumann, an economist with HSBC in Hong Kong. "Investors have woken up to the fact the Fed is serious about tapering,"

More at link
:4hlick:





GLP