The Hindu Business Line : Voices

"The American way of life is non-negotiable. And it's very hard to explain to people whose houses are being repossessed that keeping interest rates at a reasonable level is actually a good thing in the longer term.

Unlike his predecessor Alan Greenspan, Bernanke actually believes that the best way to clear up the mess from one bubble is to blow up another one."

John Stepek in Moneyweek "With the FOMC announcing a 0.5% point cut in the rate, the debate of an impending slow down in the US has only increased.

Moreover, the exact magnitude of the sub-prime crisis is yet to play out. Signals from Europe and Japan are not as salutary as they were in July.

Crude has resumed its relentless pursuit of a three figure price after a brief pause. These developments portend a steady increase of lows to those economies which are essentially growing due to the domestic demand factor.

Therefore, India would stand to benefit as a consequence. That does not mean that everything is fine in the domestic space and that we are likely to see an outperformance across sectors. However, intermittent blips cannot be ruled out."

Mr Kunj Bansal, CIO, Portfolio Management Services, Religare

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