[Archived] India on brink of financial collapse

[DannyKeg]

Article in today's Guardian:

http://www.theguardian.com/business/economics-blog/2013/aug/19/india-financial-crisis-rupee-stock-markets

It has been reported on here that the Rovers debt is now held in Indian banks against Indian security.

I am no financial man, so I just wonder what effect this Indian financial crisis would have on the Rao family and in turn on the Rovers ?

[bob fleming]

Ahh... Now I understand. That's where Shebby has been is it? Trying to sort out the Indian economy on behalf of the Rao's.

[broadsword]

"Never mind the quality, feel the churn."

[yoda]

there will be a lot of head wobbling going on

[jim mk2]

Short term problem caused by poor fiscal management. In the next generation or so India will be one of the world's leading powers.

So by the time we're all dead Rovers should be OK.

[Sparky Marky]

Would the administrators be appointed by the Indian bank when we finally go tits up?

[yoda]

Would the administrators be appointed by the Indian bank when we finally go tits up?

I thought we had already gone tits up, you mean worse is still to come

[DannyKeg]

Short term problem caused by poor fiscal management. In the next generation or so India will be one of the world's leading powers.

No question about that, the question is will there be any short term implications for the Rovers ?

[Fife Rover]

Short term problem caused by poor fiscal management. In the next generation or so India will be one of the world's leading powers.

So by the time we're all dead Rovers should be OK.

Thanks for that Jim!!.......Cheered me up no end.

[windymiller7]

there will be a lot of head wobbling going on

This really shouldn't make me laugh but it did!

[Lancs Rover]

This is also the headline and front page main article in the Financial Times.

'Initially, the shutdown (of a commodities exchange) was interpreted as a cautionary tale of lax oversight in India's often-opaque financial markets...' (FT page 5) 'as it emerged that clients of the brokers had been allowed to take out unregulated longer-term forward contracts...'

This throws a rather thin but significant shaft of light on how business, and the financial markets in particular, are managed in that country.

I doubt anyone knows for certain how far these 'deepening anxieties' (FT page 5) regarding the contracting value of India's economy and currency might affect any specific situation in the near future.

No reference to financial collapse, either, but a good spot, Danny. Could be worth keeping an eye on.

[ChrisyG]

there will be a lot of head wobbling going on

:lol:

[jim mk2]

For contrarian investors the current turmoil in emerging markets represents a good buying opportunity. The last time this happened in 1997-98 shares quadrupled and more over the next 5 years or so.

Get stuck in.

[broadsword]

For contrarian investors the current turmoil in emerging markets represents a good buying opportunity. The last time this happened in 1997-98 shares quadrupled and more over the next 5 years or so.

Get stuck in.

Spoken like a true believer in the free market.

[skrov]

Hi guys,

Since I am from India, I think I could shed some light on the Indian Bank with which Venkys are doing business.The bank is State Bank of India, which is the largest public sector bank here. Personally I feel that venkys have made a smart move because the chances of SBI going broke are very very slim. This is because majority of the transactions carried out by the government and other major public sector enterprises are through the SBI. Majority of the savings of the people are with this bank.

In any case, it is the safest banking option available from India and in case it goes broke, we ( people living in India) are going to be in real real trouble.

[Sparky Marky]

Spoken like a true believer in the free market.

Spoken like someone who cuts and pastes from Bloomberg.com

[Jock]

Spoken like someone who cuts and pastes from Bloomberg.com

Are they like the Bildersberg people?

Was Diana assassinated?

Who killed Kennedy?

Who killed Bambi?

Are the Royal Family aliens?

Was David Icke right?

Is Derek Shaw a lone wolf?

[thenodrog]

For contrarian investors the current turmoil in emerging markets represents a good buying opportunity. The last time this happened in 1997-98 shares quadrupled and more over the next 5 years or so.

Get stuck in.

Spoken like a true Thatcherite! Nice to see some of her wisdom rubbed off even though I'm sure some on here might accuse you of cherry picking. Kier Hardy will be spinning fit to bust in his grave.

http://www.telegraph.co.uk/finance/personalfinance/investing/9979201/Baroness-Thatcher-how-she-transformed-a-nations-finances.html

[yoda]

For contrarian investors the current turmoil in emerging markets represents a good buying opportunity. The last time this happened in 1997-98 shares quadrupled and more over the next 5 years or so.

Get stuck in.

I see what you did there,

let your guard down for a moment

[jim mk2]

Spoken like a true believer in the free market.

Actually, it was spoken by someone who likes a gamble now and again.

As for the free market, it can go to hell. All it creates is inequality and unhappiness.

[SIMON GARNERS 194]

Hi guys,

Since I am from India, I think I could shed some light on the Indian Bank with which Venkys are doing business.The bank is State Bank of India, which is the largest public sector bank here. Personally I feel that venkys have made a smart move because the chances of SBI going broke are very very slim. This is because majority of the transactions carried out by the government and other major public sector enterprises are through the SBI. Majority of the savings of the people are with this bank.

In any case, it is the safest banking option available from India and in case it goes broke, we ( people living in India) are going to be in real real trouble.

Very reassuring indeed ..wonder how many rupees Ewood is worth?

[sparky12]

Very reassuring indeed ..wonder how many rupees Ewood is worth?

approximately this many....

200883144.00