User 288085

Short India Is a Perfect Emerging Market Trade

I agree with the author. All of the current events tend to supplement the theory put forth. What the US saw in terms of real estate bubble is yet to happen in India. It is not the question of, if but when it is going to burst. Giving free luxury cars, cutting the interest rates are home loans are all the things that were done here in US. It is strange how the India is following US step by step and still the sentiment is that Indian economy is totally different from US. Currency, real estate, credit cards, downturn is outsourcing are few of the challenges facing India. From what I hear, there is huge defaults in payments by US companies to their outsourcing partners.I predict an exodus of CEOs leaving the companies, before the layoffs have to happen. I would do the same if I were a CEO there. Why would I want to risk my life for any layoffs that I may need to so in my company.
Each of the BRIC countries are facing major challenges without any exception.