Comments on: Recession? Place your bets

By: Mahesh Natani

Mahesh Natani — Tue, 16 Dec 2008 03:13:04 +0000

I reiterate that Us economy has entered into recession and its entering into depression is not ruled out keeping in view the continuous state of unclogged credit market,deteriorating job market and collapsing corporate profits.The US economy is expected to contract by more than 5% in the fourth quarter ending 31st Dec 2008.

Mahesh Natani,
Financial consultant,
Indore,India.
Date : 16.12.08

By: Dr. C. P. Sharma

Dr. C. P. Sharma — Thu, 20 Nov 2008 09:35:12 +0000

Current Crisis – Cure or Croak

The real economic situation is ever in a state of flux and the ready made solutions in the classical or neoclassical mould evade a lasting solution to the current crisis. Over the years the very concept of ‘economy’ has undergone a sea change. The models that address to the national economies of yester years have become redundant and they don’t go beyond a transitory solution suppressing the real economic forces, side tracking the long term perspectives. The long lasting solution needs a fresh debate among the political economists to come out with an integrated co-operative model, keeping in mind the linkages of the so called developed and the developing economies, in which the monetary and the fiscal policies play a subservient role.

Simon Kuznets was a far sighted development economist who could foresee more than half a century ago that ‘poverty anywhere is a threat to development everywhere’. The ‘national economy’ is a misnomer today and an attempt to resolve the existing depression at the national levels will always belie the expectations, specially of the developed countries, and they are likely to slip from devil to the deep sea.

I look at the present crisis as a consequence of too much monetarism of the developed countries for maintaining their growth rates overlooking the potential development of South Asia, Africa, Latin America and the Middle East. This might lead to relentless speculative tendencies, playing down the primary role of money and ultimate crash down of giant economies of the world creating a worldwide economic chaos. The retrieval from it might take a century.

By: Mahesh Natani

Mahesh Natani — Wed, 10 Sep 2008 03:22:25 +0000

I do not have any doubt about the US economy to be in recession,the 3.9 % annualized growth in the second quarter was mainly on account of strong exports from US in view of weaker dollar against Euro and leading Asian currencies making Us exports highly competitive in European and Asian markets.Since 15th July,2008 the dollar has appreciated by over 12%in as compared to Euro making Us exports quite non-competitive in the European markets especially in the wake of ongoing recession in the European countries.I do not rule out the possibility of negative growth as compared to the growth in the second quarter in US economy during the third quarter ending 30th Sept 2008,as the American economy is most likely to get crippled both on the domestic as well as the overseas turf.

Mahesh Natani,
Financial consultant,
Indore,India.
Date:10.9.08