Thursday, December 11, 2008

India Policy: Confusion Reigns...In Action & Words

(My Original Blog Post:

Lee's Dhaba for more

It seems to me this government is flying blind.

11 Dec, 2008, 1417 hrs IST, REUTERS

"The situation way forward is quite uncertain. The RBI will take appropriate action as and when required," Subbarao told reporters after a meeting of the bank's governing board.

Situation quite comfortable: Subbarao
October 15, 2008 11:49 IST
"We have to review the entire situation. The situation is quite comfortable. Everything is under control," said the governor, who returned from Washington on Tuesday morning.

So am I to assume the future is bleaker today Dec 11, 2008 (post the rate cuts and the first stimulus package) than it was on Oct 15,2008? -Lee

Today, the Administration announced that there will be an announcement next week as announced in the fiscal stimulus announcement last week...maybe

11 Dec 2008, 1639 hrs IST, PTI
The second stimulus package, Nath said, would be aimed at generating employment and ensuring that the credit needs of the companies are met.  In the next package, the Minister said, "We will look at engineering sector, greater re-finance facility for exporters and textile and agriculture sectors."

First Stimulus--Not Enough
December 9, 2008
As the business community's less-than-enthusiastic reaction to the package sank in, New Delhi sought to reassure investors.  Kamal Nath, the Minister for Commerce & Industry, told a group of reporters outside his New Delhi office. "There is Step One, then there is Step Two, and then there is Step Three," he said.

If you know what you are going to do then why don't you just tell us...what is this three step shuffle? Or are you making it up as you along ?- Lee

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