Sundaram BNP Paribas - The Wise Investor, May 2010 Edition

Some comprehensive market insights from and on the mostly forgotten I in BRIC.

The Wise Investor, May 2010

Comments

[sushi]

It is a crap link that takes down both FF and IE

[Oh regional Indian]

Away from fat-cat analyst desks and why India is s$%$#ed..

Reposting my comments on another thread...

FII's (Foreign Institutional Investors) are the plague of locusts grazing on the forgotten I in BRICS. I wish they would completely forget us here, keep their excess liquidity in their bladders or piss them away.

They (the whole, up to their eye-balls in leverage anglo banking world) are de-leveraging into the "third" world.

Most of this third world focus is on the BRICS. Writing from the I in said acronym, I can see that destabilizing de-leveraging going on all around me.

Like a ruptured well-head if you'll all pardon the insensitive pun.

They are de-leveraging into an India (as an example) down the whole pyramid.

They are funding a sell/supply side infrastructure in every field so that in a short span of ten years (give or take 1), India resembles the US I ran away from.

They play the Indian stock market (crazy swings engineered to denude the average investor). Billions coming in and out every day, with barely a whimper from regulators, making the market see and saw like a mad thing.

They are funding Indian banks (two of the fastest growing, through predatory lending practices) are over 75% foreign owned.

They are funding Indian industry (of every shade) to make shit no needs or can buy. Oh wait, the starved Indian connedsumer will buy, but only with teaser induced cheap credit form said foreign owned bank.

They are funding Indian farmers who cannot afford to eat to buy tractors they cannot afford to run (and don't need) in a classic bait/switch/kill, now we own your land kind of thing.

The list goes on and on.

So, basically, and I'll use the terms as I understand them, they are deleveraging finance into a much greater eco-no-mikey bubble or historic proportions, in the BRICS and beyond.

Make sense?

I'll said it before and I'll say it again, what we are witnessing is the end game of supply-side-ism, understood at it's most meta-level of viewing. And there are plenty of hungy poor (with TV's though) who actually think buying that shiny new bike or car (depending on where you are in the food chain) is better than food or worth selling your land/hocking your gold for).

And they have a few billion people more to give cell-phones to and refrigerators (where electricity is yet to reach)....

It's a different dimension of the Ponzi and only becomes visible when you live (as I do) in the belly.

I hope the system collapses before they fully corrupt and pollute what is left untouched by the ugly hand of usury and unearned entitlement-ness.

[whatsinaname]

Totally agree with ur views. Indian markets in a HUGE bubble awash with phony BB liquidity. Banks are flooded with foreign dollar-denominated loans.

To make things worse see what Monsatan Corp is upto in India-

http://www.youtube.com/watch?v=Av6dx9yNiCA

[Oh regional Indian]

For a genuine look at grass roots reality of the excess liquidity pissing on the poorest of the poor here in India, please read this excellent piece from Globalresearch...

http://globalresearch.ca/index.php?context=va&aid=18963

[BlackBeard]

Well.  Grantham's probability tree basically says: 30% we can put off reality for a short period of time, 70% chance for really shitty or just regular shitty.

[Grand Supercycle]

The proprietary indicators I use can identify trend changes before they occur and they have been warning of a USD rally since last year.

Just posted a new EURUSD chart: showing long term trendline with important support around 1.2770

http://www.zerohedge.com/forum/latest-market-outlook-0