Greece, Portugal and Now, Ireland....

Recently the US Govt. redeemed $900 billion bonds by infusing fresh money into the system. Now they are operating the way the MARXIST economic policy which they rejected during the cold war days. As protectionism grow in more and more economies, it is time for sitting up drawing a proper financial planning exercise. Japanese savings rate has deteriorated. There are news that Ireland is issuing Govt bonds... All these monies will cause sudden spurt and price rises finally catching up with the consumer.


Though nobody want another October 2008 situation to happen in India, the bursting of govt or private payment capacities affect us wherever it happens in the globe.


The highly volatile stock market frightens the timid and causes panic preventing long term savings. today hardly 1.4% of Household Savings in GDP reach the capital markets. Though the Indian's savings rate has been growing in Financial assets, it has not grown enough. But the way capital markets turns out to be there are no safe heavens any more for investors. The bold takes long term positions in the equity markets and earmark them for retirement planning at early stages of employment.

So PIIGS (Portugal, Italy, Ireland, Greece, Spain) are on rampage.


Take care