Investors pull out of India

[Days]

You know, the government is trying to feed the people. Bankers are infuriated. Imagine wasting money on the populace! Money should be forked over to the super rich, not used to feed the poor, every banker knows that.

Remember, this was the hot spot on the global investor scene, this was where the big money was burning up the spread sheets. India was building infrastructure, paving roads, you heard me right, paving roads!

Then the government gets the idea that they could act like a government. Now watch as the bankers rip human flesh, learn how the attack happens...

Baring their teeth

 

[Toro]

Wrong.

Capital is flowing out of most emerging markets for economic and financial markets reasons.

 

[Vikrant]

India is a textbook example of a capitalist country which caters to super rich. They do not have a system of distribution of wealth. On one hand they have people who are billionaires. On another hand they have people who have almost nothing. I was reading a report not long ago which stated that Indians keep over one trillion dollars hidden in Swiss banks. This kind of tax evasion and no sense of duty among the rich is prohibiting distribution of wealth.

If taxes are collected properly, there will be enough money for investing in agriculture, defense, infrastructure and so on.

 

[Vikrant]

...

Recollecting the 1991 reforms, when "the brave moves were made", he said "it's the same team. What has happened in my view is that there have been forces...too many competing interests. By and large whatever is happening should be looked at to the benefit of the people of India not to few vested interest in India".

...

India has lost confidence of the world: Ratan Tata

 

[BillyV]

Here is a more reasonable explanation that doesn't involve conspiracy theories...

India's rupee has been under pressure since May but the 5 per cent fall in the past week has been precipitous and came in the face of efforts by the central bank to provide support.

The selling has spread to Indonesia, Malaysia and Thailand, as well as several other emerging nations, including Brazil, South Africa and Turkey.

Last December, when the US Federal Reserve announced its final quantitative easing program involving the purchase of $US85bn in bonds a month, Asian and other emerging nations complained it was exposing their economies to volatile and potentially destabilising capital flows. Brazil's Finance Minister called it a "monetary tsunami".

Fed chairman Ben Bernanke retorted that large capital inflows were the result of undervalued exchange rates in emerging nations and had nothing to do with him. "The perceived advantages of undervaluation and the problem of unwanted capital inflows must be understood as a package -- you can't have one without the other," he said.

But the emerging nations were right. Capital poured into them after the US quantitative easing began and is now draining out just as fast as the Fed prepares to start withdrawing its stimulus.

Lagarde cited estimates that cumulative net flows to emerging markets had risen by $US1.1 trillion since the global financial crisis unleashed waves of unconventional monetary easing by advanced country central banks. She said this was above the long-run structural trend by an estimated $US470bn and had inflated asset markets.

"Corporate leverage and foreign exchange exposures also increased in several cases," she said. "Real estate prices have been buoyant, for example….In recent months, some of these developments have been partly reversed."
…the research shows a key difference between advanced and emerging countries. For advanced countries, when one form of capital inflow, such as foreign direct investment or bank lending, dries up, another such as portfolio flows rises to replace it….In emerging countries, by contrast, there is a strong correlation between the different forms of capital flow, making them much more exposed to the sort of tidal shift in global capital that is occurring at the moment.

Tidal Shift in Global Capital | The Australian

 

[bianco]

The call centres in India of companies operating in Western nations should be closed down and the jobs of Americans/Australians/ Britons etc returned to America/Australia/Britain etc where they belong.

A multinational company operating in Australia is sending the jobs of mrs bianco and most of the staff in her office building to the Philippines for $2 an hour.

Mrs bianco has been there for many years, as have most of the others.
They have done nothing wrong.
All of sudden they'll be unemployed.

Welcome to the age of corporate greed.

 

[Ava]

India is a textbook example of a capitalist country which caters to super rich. They do not have a system of distribution of wealth. On one hand they have people who are billionaires. On another hand they have people who have almost nothing. I was reading a report not long ago which stated that Indians keep over one trillion dollars hidden in Swiss banks. This kind of tax evasion and no sense of duty among the rich is prohibiting distribution of wealth.

If taxes are collected properly, there will be enough money for investing in agriculture, defense, infrastructure and so on.

India has produced and advanced in ways that other nations have not. Her citizens have learned English, through the British, and their emphasis has been on education, specifically, math and science. ( and they produce great music, of which I am listening to at this very moment )

May India continue to soar.....

 

[Vikrant]

^ You do not need English to advance. There are quite a few countries that do not speak English and are quite advanced. English if anything has destroyed India's sense of identity.

What music are/were you listening to?

 

[bianco]

India is a textbook example of a capitalist country which caters to super rich. They do not have a system of distribution of wealth. On one hand they have people who are billionaires. On another hand they have people who have almost nothing. I was reading a report not long ago which stated that Indians keep over one trillion dollars hidden in Swiss banks. This kind of tax evasion and no sense of duty among the rich is prohibiting distribution of wealth.

If taxes are collected properly, there will be enough money for investing in agriculture, defense, infrastructure and so on.

India has produced and advanced in ways that other nations have not. Her citizens have learned English, through the British, and their emphasis has been on education, specifically, math and science. ( and they produce great music, of which I am listening to at this very moment )

May India continue to soar.....

They'll be soaring right in and taking over America, and the jobs of Americans, given the chance.

Bank staff refuse to train overseas replacements - National - smh.com.au

2006

Bank staff refuse to train overseas replacements

Staff at a St George Bank accounts office in Kogarah yesterday voted not to help train a team of IT workers from the Indian outsourcing company that is taking over their jobs.

One staff member, Cathy Samartzis, said it was like being asked to dig your own grave.

"Some people have been here a long time," she said. "They have mortgages and families and kids to feed. It makes me feel sick."

The staff, who were warned last month that they would lose their jobs early next year, were told on Tuesday that they would assist with training the new staff through a buddy system.

Their Indian replacements first appeared in the office on Wednesday.

 

[bianco]

You know, the government is trying to feed the people. Bankers are infuriated. Imagine wasting money on the populace! Money should be forked over to the super rich, not used to feed the poor, every banker knows that.

Remember, this was the hot spot on the global investor scene, this was where the big money was burning up the spread sheets. India was building infrastructure, paving roads, you heard me right, paving roads!

Then the government gets the idea that they could act like a government. Now watch as the bankers rip human flesh, learn how the attack happens...

Baring their teeth

If there weren't so many people, the govt would be more easily able to feed them etc.
Time India started with population control.

 

[Vikrant]

^ In case you failed to understand the topic of the thread, this thread is about the reason why investors are withdrawing from India. This is not about BPO.

I have a suggestion for you: life will get much easier if you exercise your brain.

 

[Moonglow]

They do have pop control.
There is also a shortage of women, same with China.
Looks like those Afro-American single women are going to get somebody to replace their baby's Daddy.

 

[Moonglow]

Money streamed out of emerging markets, destabilizing currencies, sinking stocks and creating headaches for policy makers already worried about faltering growth.

Money is streaming out of emerging markets from India to South Africa to Brazil, destabilizing currencies and creating headaches for policymakers already worried about faltering growth. Patrick McGroarty reports.

In the latest signs of turmoil, highflying stock markets fell in Asia, while currencies in India, Thailand and Indonesia reeled in the face of a surging U.S. dollar.

Some emerging-market currencies rebounded in New York trading hours but others remained weaker on the day. The volatile trading reflected the difficulties investors face in trying to predict when developed-world banks might start to withdraw stimulus and how such moves would ripple across global markets.

An exodus from emerging markets threatens to hurt the financing and growth prospects of developing economies that have come to rely on large inflows of foreign capital in the wake of the global financial crisis.

Money Flows Out of Emerging Markets - WSJ.com

 

[Moonglow]

Mexico is predicting 4% growth next year. With increased activity with the USA in trade. But the trade deficit narrowed last month.
They predicted 4% for this year but actually it will only be in the 2.6% range.

 

[bianco]

^ In case you failed to understand the topic of the thread, this thread is about the reason why investors are withdrawing from India. This is not about BPO.

I have a suggestion for you: life will get much easier if you exercise your brain.

And the first line of the thread reads:

You know, the government is trying to feed the people.

 

[Vikrant]

The main crisis in India is continuous devaluation of Rupee. The interesting thing is that nothing in India that could be causing this. All of a sudden, investors (from certain countries) started pulling out. This was followed with negative coverage in western media on the condition of Rupee. Then the recent instability in the middle east did further damage. Indian companies invest plenty of money in countries like UK, Australia, etc which will continue to generate revenue for Indian companies although the primary beneficiaries will be those countries not India. So Indian government has to step in and start blocking the outward investments and encourage inward investments.

 

[Vikrant]

^ In case you failed to understand the topic of the thread, this thread is about the reason why investors are withdrawing from India. This is not about BPO.

I have a suggestion for you: life will get much easier if you exercise your brain.

And the first line of the thread reads:

You know, the government is trying to feed the people.

That post you are referring to is talking about investment in infrastructure which results in feeding people and making their lives better. This applies to all countries in the world.

 

[Vikrant]

They do have pop control.
There is also a shortage of women, same with China.
Looks like those Afro-American single women are going to get somebody to replace their baby's Daddy.

Australia too has significant surplus of women.

 

[Days]

I'm wrong, because you agree with me?

 

[Days]

What exactly are you labeling a conspiracy theory? It isn't a crime for bankers to take their money elsewhere, but it does happen for a reason.