| The recession in the US market and the global | | | | To curb the liquidity crises the RBI will continue to |
| meltdown termed as Global recession have engulfed | | | | initiate liquidity measures as long as the current |
| complete world ecomony with a varying degree of | | | | unusually tight domestic liquidity environment prevails. |
| recessional impact. World over the impact has | | | | The current step to curb these being lowering of |
| diversified and its impact can be observed from the | | | | interest rates and reduction of PLR.However, the |
| very fact of falling Stock market, recession in jobs | | | | big-picture story remains unchanged – all countries |
| availiability and companies following downsizaing in the | | | | in the world with current account deficits and strong |
| existing available staff and cutting down of the perks | | | | credit cycles are finding it difficult to bring cost of |
| and salary corrections. Globally the financial sector | | | | capital down in the current environment. India is no |
| sacking the existing base of employees in high | | | | different. New measures do not change our view on |
| numbers in US the major example being CITI Group | | | | the growth outlook. Indeed, we remain concerned |
| same still followed by others in hospitality industry Jet | | | | about the banking sector and financial sector. The |
| and Kingfisher Airlines too. The cut in salary for the | | | | BOP- Balance of Payment deficit – at a time |
| pilots being 90 % can any one imagine such a huge | | | | when domestic credit demand is very high – is |
| cut in salary. | | | | resulting in a vicious loop of reduced access to |
| In the globalized market scenario, the impact of | | | | liquidity, slowing growth, and increased risk-aversion in |
| recession at one place/ indusrty/ sector perculate | | | | the financial system. |
| down to all the linked indusrty and this can be truly | | | | In total the recession have turned down the growth |
| interpreated from the current market situation which | | | | process and have set the minds of economists and |
| is faced by the world since approx 2 month and still | | | | others for finding out the real solution to sustain the |
| the situation is not in control inspite of various | | | | economic growth and stability of the market which is |
| measures taken to fight back the recession in the | | | | desired for the smooth running of the economy. |
| market.The badly hit setor at present being the | | | | Complete businesss/ industry is in dolledrum situation |
| financial sector, and major issue being the | | | | and this situation persist for a longer duration will |
| "LIQUIDITY Crises" in the market. | | | | create the small business to vanish as they have |
| In-spite of the various measures to subsidise the | | | | lower stability and to run smoothly require continous |
| impact of the recession and cut down the inflation | | | | flow of liquidity which is drived from the market. |
| present nothing really sound have been done. | | | | In present situation down fall in one sector one day |
| Various steps taken by RBI to curb the present | | | | leads to a negative impact on the other sector thus |
| recession in the economy and counter act the | | | | alltogether everyone feel the impact of the Financial |
| prevailing situation. | | | | crises with the result of the current recession which |
| The sudden drying-up of capital inflows from the FDI | | | | started in US and slowly and gradually due to linked |
| which were invested in Indian stock markets for | | | | global world have impacted everyone. |
| greater returns vizualizing the Potential Higher Returns | | | | Solution for the problem still remain at the top of the |
| flying back is continuing to challenge liquidity | | | | mind of every one, still everyone facing the impact |
| management.At the heart of the current liquidity | | | | of recession but how long is the major question |
| tightening is the balance of payments deficit, and this | | | | which is of great importance. |
| NRI deposit move should help in some small way. | | | | |