|S&P 500 returns||+2.5%|
|Nikkei 225 (11:09 AM IST)||-0.97%|
|US Financials index||+1.55%|
|ICICI Bank ADR||+13.64%|
|Call rate (31st, 11 AM||18.53%|
|Currency futures (11:10 AM IST)||49.68|
- This morning, Financial Express had an editorial which strongly criticises RBI's handling of the money market. Things have worsened sharply on the money market. See this article from Business Standard and Prabhakar Sinha in Times of India yesterday. This morning, CCIL shows a `high price' of as much as 21% on the call money market. We're back to very tight liquidity conditions. Infusing rupee liquidity is imperative.
- Anto Antony has an article in Economic Times talking about a paper by Economists-Who-Must-Not-Be-Named.
- Avinash Persaud in Financial Express.
- Paul Kattuman writes in Financial Express about the importance, in a downturn, of having a financial system that is well functioning. Also see the APS 2008 paper on this.
- A few weeks ago I had commented on the liquidity crunch that had afflicted Unitech. Yesterday, there is a report where Unitech has obtained Rs.6,120 crore by selling their ownership of Unitech Wireless. This emphasises the links between different aspects of economic reform. Addressing the liquidity crunch at Unitech critically required easing capital controls against foreigners buying shares of unlisted telecom companies.
- Are we sure this will not work out as bad as the Great Depression? by Anders Aslund.
- Percy Mistry on the Brown package.
- The US Fed has extended lines of credit of dollar funds to Brazil, Mexico, Korea and Singapore.
- Sri Lanka has run a pegged exchange rate (LKR 108 to the USD) from November 2007 onwards. Their reserves have dropped to $2.6 billion. They have budged and done a small depreciation. I don't see how a small depreciation solves the problem.