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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: shades who wrote (65737)	7/10/2006 5:49:15 PM
From: bond_bubble	Read Replies (1) \| Respond to of 110194

India has a weird problem. Even though it is a democracy, people refuse to vote to any party other than the 2 parties that get elected!! 40% dont vote and actually, they are the majority!! Indians only choose one of the two (both regional and national level) - even if 40+ names appear on the ballot!! People complaint about politicians but they will just not vote anyone besides those two parties!! God knows why!! Also, the Indians support small scale industries (there are laws prohibiting building manufacturing to scale), govt enterprises (banks, utilities, steel, oil etc) inspite of poor service, corruption etc. Recently, my friend built a home in south India and his cement, steel, bricks costs have all DOUBLED from a year earlier (when his sister built her home). There is humongous speculation in land and in the last six months, land prices have even doubled in 4 months (in the IT regions)!! All these credit bubbles are built on IT exports to US!! I cant imagine how someone can build anything for the Indian domestic consumption at these "inflated prices". Every enterprise in India has now geared to serve these IT pros!! Clearly, the credit bubble is making the export community of India and China rich and screwing the rest of the population. Credit bubble always makes rich people richer [those close to the credit bubble] and poor people poorer [those farther from credit]. But, there are always lot of "voodoo" economists, who think, the richer guys will throw some "crumbs" to poor and make the poor richer!! In my opinion, India will be toasted (can you imagine it has 4% of gdp trade deficit?) just like the US after the credit bubble bust. China might not be toasted as bad as India/US.