HaavBline

BRIC to BIC to BICI?

This is a silly game.

If Indonesia, why not Turky, South Africa, Mexico? Are we to change the line-up everytime some country's growth rises while another get into temporary trouble?

India Unraveling: Stay Short Emerging Markets

Thanks for a good report on a local situation. It is true the case in India could be happening in many emerging markets, however, different countries have different strengths and weakness, and will have different policy response and different capabilities to adapt to the sea change in global economoic environment. China, India, Mexico are producing countries that should benefit from sharply lowered commodity prices, Russia, Brazill, Middle Ease may suffer more.

The Indian response about infrastructure spending reported by Rakesh puzzles me. Why are projects shelved when India needs to stimulate domestic spending? Why did India announce a paltry $8B stimulus package? (Why bother to announce it?) This seems to be very different policy responses from most other countries. India's balance sheet may not be golden, but as far as I know it is not in dire strait either. So I wonder what the Indian central & state goverments are doing?

I agree about the Obama factor, market seems to WANT TO warm UP to the expectations of the big stimulus package. It probably will be announced soon after he takes office in late January, then we will see what happen. Market willl probably be dogged by questions about the financing and viability of that package afterwards.

Another reader made a good observation responding to another article:
From the standpoint of purchasing power parity (or considering PP differences in China & US), even a $1T Obama stimulus package will have somewhat less impact to the US than the $580B Chinese stimulus package will have to China.