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1. Im not a US citizen. Nor do I live in the US.
2. The economy didnt collapse. If the economy of the US collapses, there would be a domino effect. its called a "recession."
3. Ratings are to show that they can repay their debt, which the US does.
4. BBB Ratings is 1 rating above junk grade.
5. The entire world invests in the US economy, including India. US T-Bills are used as the Risk free rate. Modern portfolio theory says to lower risk, one should invest in stocks + the risk free rate. Hence, why the economies of all the major world countries including India, are effected by the downgrade of the USA.
6. It isnt because people arent trained in my country. Its because the Indian economy is so poor and poverty is so rampant, that a 20 bill of my currency can feed a family in India. It isnt because people arent trained, its because it provides for cheap labor.
7. Please educate yourself before coming off ignorant.
8. I understand lulla or whatever comes off as ignorant too, but replying with more ignorance isnt productive. It just makes you seem, well, ignorant.
9. Ban immigration: what an ingenious tactic
in case you failed to realize, that was sarcasm.Last edited by billybobjones; 08-13-11 at 07:10 PM.
08-13-11 07:05 PM - India does not hold its foreign reserves in T Bills. Only a small percentage is held in T Bills.1. Im not a US citizen. Nor do I live in the US.
2. The economy didnt collapse. If the economy of the US collapses, there would be a domino effect. its called a "recession."
3. Ratings are to show that they can repay their debt, which the US does.
4. BBB Ratings is 1 rating above junk grade.
5. The entire world invests in the US economy, including India. US T-Bills are used as the Risk free rate. Modern portfolio theory says to lower risk, one should invest in stocks + the risk free rate. Hence, why the economies of all the major world countries including India, are effected by the downgrade of the USA.
6. It isnt because people arent trained in my country. Its because the Indian economy is so poor and poverty is so rampant, that a 20 bill of my currency can feed a family in India. It isnt because people arent trained, its because it provides for cheap labor.
7. Please educate yourself before coming off ignorant.
8. I understand lulla or whatever comes off as ignorant too, but replying with more ignorance isnt productive. It just makes you seem, well, ignorant.
9. Ban immigration: what an ingenious tactic in case you failed to realize, that was sarcasm.
$20 will not buy you fuel enough to travel more than 80 kms in India, so get your facts straight. It won't even buy you a meal for two at a decent place.
India frankly does not care about ratings from US agencies because only 6% of our sovereign debt is external, the rest is in Indian Rupees and is raised domestically. Couple that with nearly 10% inflation, the domestic debt is actually cheaper over time.
You raised the issue about Indians in your country not me. If you have a problem vote for the right.
BBB or AAA doesn't matter because the ratings agencies are fools. And while these fools were downgrading US debt, they were upgrading India. Google it.
Indian has their own domestic ratings agencies and everything does not begin and end in USA.
India is not a huge stakeholder in the US economy and neither are the biggest trading partner of USA, hence the domino effect you are referring to will not effect India. Indian economy was also insulated from the events of 2007. You should get your facts straight. And India is the fourth largest economy in the world so I don't know what you are talking about when you say that India does not matter.
If you care to read what other write then you would have read that I said the same thing as you did about ratings and I hold S&P decision to downgrade US debt as asinine since US has never defaulted. This shows that these rating agencies can't be trusted to rate a rat's dinner.
As for cheap labor, if you want to overpay your people by ten times for doing something that Indians and Chinese will do for a fraction of the cost, then you have to examine your system and not lay blame on us.
Lastly, I was responding to a post which made it seem absurd that India should get a launch before USA. You jumped in with both feet and your eyes closed.
As I said before, the world doesn't rotate around the US anymore. But why should you care, you are not from US. Maybe from some other western nation with debt issues.08-13-11 07:40 PM - 1. You obviously have no background in finance. So please dont drag this out, youre making yourself look ignorant.
2. I never said 20$ I said 20 of my currency (the worlds strongest currency), which amounts to $73.38, which is the worst case monthly salary of some of the cheap labor here.
3. Every investor in the world cares about ratings. But i guess India is above the world
4. Good for India, too bad that the entire world has a standard, and India's credit agencies arent part of it. No investor in the world thinks to himself, "gee I wonder what the credit agency of india thinks about Indias credit rating" ... please use some common sense here. You seem really ignorant.
5. Our system is not the problem. Its your system, and the GDP per capita of 1000$ which doesnt amount to much. Compare that with the US (about $50,000) and you can see the issue. The issue is the rampant poverty in India. They send workers to other countries because quite frankly, your currency and living conditions are so poor, that they can be making more money elsewhere, in a more stable economy. You tell me any country that would run well if all the employees were making $80 a month. Rediculous.
6. No my country has no debt issues.
GDP per capita of 80000$. Thats about 80x India.
AA Rating
7. No people from my country look for jobs in India, yet we have more indians here than nationals. So you tell me who has the poorer economy and living conditions. Pretty obvious to me.
8. People dont migrate to other countries if the conidtions are worse.
9. I know you were replying to an ignorant comment. You did it by spreading more ignorance. Pat yourself on the back, youre a special snowflake.08-14-11 03:45 AM
.. love meeting new people..
