Thursday, April 26, 2012

STANDARD AND POORS AND THE RATING DELIMMA

Today i heard about the standard and poor downgrading their outlook of indian economy, this has followed  the much debated statement of kaushik basu( economic advisor of  prime minister) that major economic decisions will be help uptill the next general election due to insufficient support in loksabha and antagonistic attitude of supporting parties, The indesiciveness of present government has been thoroughly discussed in media for a week and nothing major has come out of it, the bottom line is the fear of taking decisions because of hyperactive CAG and anti corruption setiment which is prevailing across the country, the logic as i construe it is we cant do anything without probability of loss to govt exchequer and when questions will be raised we dont want to be a party to it because the system has become so ill that it wouldnt be possible to heal it at such a short notice, this is perhaps a surrender or a tactical manipulation of the govt to rein in corporate towards their side which was evidently giving a mute support to anti corruption movement through various media agencies. All these chronological debacles make us seriously ponder about what is happening to our economy which is pulling it down in a chasm. moving on the lines of european economy despite of  being cushioned by healthy local demand and an economy which can still be called a mixed economy.

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