| Re: Financial Crisis hit in US - Is India taking it seriously or will India face the -
October 11th, 2008
the financial crisis has hit US market to the extent dat
5 of big companies of wallstreet
bearStearns,freddie mac ,fannie mae, merill lynch, lehmann brothers...
were on verge of collapse and filed for bankruptcy. some of the companies like merill lynch was acquired by jp morgan,bearStearns acquired by bank of america.fannie mae and freddie mac got us government assitance,lehman brothers went bankrupt .......its lehmann brothers asian operational company being acquired by Nomura .
The largest insurance co. in us also severly hit by us credit crisis ...so government acquired 80% stake ......all dese happens becoz of 3 main reasons
1. excessive leverage
2. insurance bad loan policies
3. financial reengineering..
Now becoz the downturn in us economy its affecting indian economy too.rupee value is depreciating now recently 1 $ =48.72 Rs..FII's starts selling off their securities leading to credit crunch in the market mkt.and government is amending monetary policies so to keep up the stock market ..recently cash reserver ratio has been reduced to 8.5% means it ll infuse Rs 20,000 cr on 11 th october to the banks as expenditure. |