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We reported yesterday that Singapore’s investments in India to the tune of billions of dollars is in dire straits because of the crisis enveloping the housing market there. This is, however, only part of the story. The report below highlights the extent of the economic and financial crisis that is gripping India. Again, the question is: How much of our money is being frittered away by the Lee family through the GIC and Temasek?
Singaporeans must demand answers and transparency. But the PAP is desperately clamping down on freedom speech and assembly because it knows that only through people power can it be held accountable. As a result, it is getting a free pass.
Are Singaporeans going to stand up only when the money is all gone? Join the SDP and together let’s claim back our rights, our money and our nation. Email us right now at [email protected] and do your part. Stop being fearful slaves and stand up as a proud citizens.
Financial crisis affecting India, Asia: Experts
The Economic Times
The global financial crisis is far from over and it would have a major impact on India with FIIs taking out money from the market and many loans turning into bad ones, said experts here on Saturday.
IIM-A Professor Jayanth Verma said, “In India and Asia we are at the beginning…I think India is where the US was an year ago. And all it looks as if we are facing liquidity crisis in India and much of Asia, but its lot more than that.”
He said the crisis was affecting India and other Asian countries as FIIs were taking out money from the country, and that was happening across Asia.
“The crisis is not over yet. And how long will it last nobody really knows as in the financial sector in the US and the UK, there are many more problems to come out as yet,” London School of Economics Emeritus Professor Lord Meghnad Desai said during a panel discussion at Confluence-2008.
However, guessing over the time frame by which the economy would recover panelists predicted, it could be within a span of three-four years. The real output crisis would exist say for next 9-12 months and real financial crisis for another 24 to 30 months, Desai added.
“There are reports that we may have few billion dollars more of commodity derivatives that have gone bad, they brought crude at 120 dollar a barrel, I am looking at marked to market losses on that and similarly in metals, but it’s manageable,” Verma said.
“The real estate bubble in India is bigger than the US. In the US they talk about rise of 50 per cent in real estate prices, but in India between 2003 to 2006 the real estate price tripled,” he said.
“In 8-12 months, we will see the non-performing assets climb and that will show bankruptcy of financial intermediaries, I think we are facing a bigger crisis than the Asian crisis of 1998,” Verma said.
The thing that is hitting us is global recession. The export drops in India, will have an impact on the economy, that creates the necessity to devalue currency, Verma said, adding the export drops in Singapore are higher as compared to India.
ICICI Prudential Chief Executive Officer Shikha Sharma, who was also part of panel, said “Good part of our economy is that its domestic consumption driven, and I expect recovery within 3-4 quarters.”
However, Lord Meghnad Desai said “I expect it to happen by 2011.” While Prof Jayanth Verma of IIM-A said “I expect the things to get sorted out between next 2-3 years.”
Morgan Stanley Head (Private Equity) Aluri Rao who also took part in the discussion said “Economy would be doing well in first quarter of 2010.”