The only amount that is actually committed in the Europe rescue package is 60 billion pound from an EU emergency fund
It's hard to fathom why billionaires like Rajaratnam stake their reputation for tiny additions to their wealth.
We need to be careful not to confuse financial market reform with following the US model of regulation, if finance is to remain a servant, not master, of the real economy, says A V Rajwade.
Finance capital is the creative minority that Toynbee spoke of -- one which takes more than it gives to society.
If India does not want to shed jobs in labour-intensive industries, it must have a competitive exchange rate.
The Liberhan Commission gives its report 17 years later, the NHAI routinely delays contract... the list goes on
I think the biggest mistake of the British parliamentarians was to make a little extra money, officially and within the rules. A far better way is to make off-balance sheet money -- as we do -- and keep it in Swiss banks. (Of course we bring it back, or some of it anyway, at election time and the rupee strengthens in the havala market.) If occasionally one does get caught with his pants down, he can always disclaim all knowledge about the money.
Finding a subsitute for the dollar as well as China being able to grow without the US market will both take time.
It was the political class that relaxed rules and supervision to allow bankers to create the mess they did, says A V Rajwade.
The huge losses suffered by major banks recently, particularly in the United States and the United Kingdom, have brought to the fore the weaknesses of the architecture of the Basel II capital ratios, and have also raised questions pertaining to the wisdom of fair value accounting norms.
The huge deficit may lead to a reappraisal of India's macro-risk - this will change the view on the rupee.
The fact is that too many innovations are merely complexities aimed at hiding risks and making pricing less than transparent, and risks are taken at the cost of the share-holders, not the bankers themselves, says A V Rajwade.
Poor governance, rather than a shortage of funds, is what will really hurt India's growth prospects.
Lehman Brothers was allowed to go bankrupt. One has not seen any convincing explanation for the different treatment.
With volatility persisting, Warren Buffet's description of derivatives is turning out to be more and more apt, says A V Rajwade.
The RBI's Review is completely at odds with its actions.
History shows that confidence is at its highest just before a fundamental change occurs.
One should of course not underestimate the US, its strength in research and innovation, its great universities, its ability to attract talented immigrants, etc. But will that be enough to face a resurgent China, determined to take its legitimate place in the sun, asks A V Rajwade.
Developed economies may just get more protectionist in the face of stronger Asian economies
Welcome the rise in prices to the extent it is created by an increase in the purchasing power of the poor. The negative interest rates are supposed to be a disincentive for savings, thereby increasing demand.
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