Friday, October 10, 2008

International Financial Crisis

BSE Sensex which is around 22000 (Twenty Two thousand) mark in March 2008 had gone below the level of 11000 (Eleven thousand). All the major scripts like Reliance Communications (RCOM), ONGC, TATA Steel, NTPC, SAIL, State Bank of India, Relinace Petrolium (RPL), Reliance Infrastructure, etc. have lost more than 50% of their 52 weeks high and some of them have touched their 52 weeks low or lost more than that. High Inflation Rate is other major factor which is standing behind slowdown. I hope that share market will recover after the election when new Central Indian Government will be formed. I hope by May-June 2009 Sensex will cross the 15000 mark.

Above mentioned slowdown is the result of dependence on FII money / Foreign Investors and financial failure of US economy players like Lehman Brothers, Goldman Sachs, AIG International etc. Even many other European & banks/financial institutions of other countries are also seeking help from governments of their respective territory. Some banks and financial companies have received the help from central banks of their nation to save themselves from bankruptcy. Before the slowdown whole world is working in the style of American system which is failed now and due to same whole world is facing financial crisis.

Still I think the financial crisis has not shown its full powers and can lead to bankruptcy of some nations and failure of financial/banking/insurance companies worldwide. IMF, World Bank and other international financial organizations are worried and looking for ways to save the whole world from financial crisis which happens because of virtual creation of assets and too much over estimation of assets or we can say a hype of too much over estimation by private sector players without any intervention, monitoring by Governments of their respective countries.

In long term the unemployment, Inflation, political & other concerned crisis are not estimated till now which have much bigger impact on society and humanization.

Lets come forward to save our world from this crisis and efforts should be made that future generation will be able to save themselves from this kind of problem. Long term financial policy on national and international levels needs to be designed keeping in mind the safety aspects and interest of investors.

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