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Showing posts from November, 2008

Economic Impact of Mumbai Attacks

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Hong Kong-based Political & Economic Risk Consultancy Ltd. has recently rated India as the riskiest of 14 Asian countries, not including Pakistan and Afghanistan, it analyzed for 2009. The Mumbai attacks are likely to worsen India's risk rating, especially if the attacks lead to hostilities with Pakistan and anti-Muslim riots in India. By targeting foreigners and the nation's commercial capital, the terrorists have struck at international links that have supported 9 percent average growth in the $1.3 trillion Indian economy for the past three years. The Mumbai events "couldn't happen at a worse time," Patrick Bennett, a strategist with Société Générale in Hong Kong, told the Wall Street Journal.

With the economic growth already slowing to a multi-year low rate of 7% and the national elections approaching in first half of 2009, these attacks have come at a particularly awkward time for the ruling Congress party. The opposition BJP's leader L.K. Advani has c…

Indian Cricketers Join Major League Baseball

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While the Indian Navy is going after the pirates in the Gulf of Aden, two Indian youngsters are joining the Pirates in the United States.

Rinku Singh and Dinesh Patel are two 20-year-old pitchers with million dollar arms. Neither had picked up a baseball until earlier this year. Both have now signed free-agent contracts with the Pittsburgh Pirates, the prestigious five-times winners of the Major League Baseball World Series. They were the top finishers in “Million Dollar Arm,” an Indian reality TV show that searched for potential Major League Baseball talent in the country with millions playing cricket. They are believed to be the first athletes from India to sign professional sports contracts outside their country in a sport other than cricket. These contracts open up new and lucrative opportunities for South Asian cricketers beyond India's new cricket leagues.

The faster of the pair, Patel has clocked at 91-92 mph pitching speed, significantly slower than Pakistan's Shoaib A…

Will Barack "Barry" Obama Surrender His Blackberry?

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Will President-elect Barack Obama be allowed to keep his favorite Blackberry when he takes office on January 20, 2009? This question is being raised in Washington by those who see a conflict between the US law and the use of technology by a US president. The need to answer such a question did not arise because all of the US presidents to date have not been tech savvy. It is alleged that George W. Bush did have an email account prior to becoming president but he gave it up at the insistence of secret service. Pointing out the dangers of presidential isolation, Jonathan Alter of Newsweek puts it as follows: "Bush foolishly listened to the security people who made him give up his e-mail account in 2001. The result was that old friends suddenly found they had no way to get through to the president. More than a few watched in horror as he drove the country over the cliff."

Why the Conflict?
Variously described as Barackberry or Crackberry, president-elect Obama is reportedly addict…

Modern India: 21st Century's Economic Power House

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The pre-British, early 19th century Moghul India, described as caste-ridden, feudalistic and unmodern, was economically ahead of the rest of the world,including Britain and the US, according to S. Gururmurthy, a popular Indian columnist. The Indian economy contributed 19 per cent of the world GDP in 1830, and 18 per cent of global trade, when the share of Britain was 8 per cent in production and 9 per cent in trade, and that of US, 2 per cent in production and 1 per cent in trade. India had hundreds of thousands of village schools and had a functional literacy rate of over 30 per cent. In contrast, when the British left, India’s share of world production and trade declined to less than 1 per cent and its literacy was down to 17 per cent. And yet, in 1947, India had large Sterling reserves, no foreign debt, and Indians still had an effective presence in such trade centers as Singapore, Hong Kong, Penang, Rangoon and Colombo.

For decades after independence, however, the Indian economy re…

Fraudulent Mortgages in US Triggered International Financial Crisis

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An Indian-American investor and producer of Bollywood movies has been convicted of mortgage fraud in the United States. How did he scam US banks and investors? How did US mortgage money end up funding Bollywood? To answer these questions, let's look at the broader story of US mortgage fraud and its impact on the international financial markets and the world economy.


The French stock market triggered worldwide shares selloff in August 2007 after BNP Paribas, the largest publicly traded bank in France, suspended investors’ ability to remove money from three funds that had invested in American mortgage securities. The bank said it had become temporarily unable to place a value on the funds, which have turned sour as increasing numbers of homeowners have defaulted on their loans.

The news came as a shock to many who mistakenly believed the damage from the US mortgage crisis was limited to the US financial markets. How did this happen? The answer lies in how the mortgage business has ch…

Obama Technology Policy and Impact on South Asia

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Technology will likely get significant attention by President-elect Barack H. Obama, in spite of the more urgent issues of two wars, a sputtering economy and ballooning US national debt. While there will be the usual rush by various special interest groups in the high tech world to try and influence US technology policy to favor their particular sectors or products, it is important for the new administration to see each technology in the broader context of national challenges such as government transparency, climate change, energy independence, delivering cost-effective healthcare broadly, and overcoming major national economic challenges.

Obama understands the difference that online networking technology made in raising record amount of $700m for his campaign, and energizing the young people to get involved as campaign organizers, workers and voters. It can be expected that Obama will continue to promote and use the online media to reach out to the American people and inspire them t…