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Slowdown is good |
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Slowdown has its benefits. It should be allowed to run its course. The huge asset price inflation of the past four years has put even basic necessaties out of the reach of most folks. A handfull of people have become vastly richer, even beyond their own imagination, while 99.9% of India's population is suffering either under loads of debt or being deprived of their needs. Due to the slowdown asset prices are cooling off, be it metals, Oil, Real Estate, etc., which is good for the have nots. Mindless slashing of interest rates must not be entertained. |
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Re: Slowdown is good |
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Amal
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| 30 November 2008, 21:18:05 |
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Friends
the law of nature always has a trends which follow something similar which will be a series of ups and downs. one cannot have a secular ups or downs. A times comes when the intrasinic value of any asset is either overvalued or undervalued, what is than needed is some technical corrections to get back to the correct intrsinic value. but since this is not a perfect world the value may never be at equalibrium. thus the tides and ebbs in the value process continues one has to know how to ride these waves. These are good as every small factors are incorporated into the value process viz inflation, demand supply etc |
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Re: Slowdown is good |
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I agree with you Polyvin. From the perspective of asset prices correction, a "slowdown" is good. If the basic inpt prices be it commodities, rentals etc, becomes too high to threaten the very viability of projects, it should be a signal of a downturn in asset prices. For real users of the inputs, it should probably be good news. |
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Re: Slowdown is good |
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Amal
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| 17 February 2009, 07:37:28 |
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What happens when the price overtakes the value. Any person who is consuming will drop consumption. in short prices - demand- supply will always play a significant role, in determining the economic cycle. These are complex interelated situations which will determine a lot of dynamic situations which are prevalent in the economy. Broadly inflation, recession and other combination of the two aspects give rise to the level of activities in the economy. |
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