The 'Tom and Jerry' market - again !

The Indian stock exchanges - BSE, NSE - had their 'Tom and Jerry' moment again, on Feb 24th, 2011. The bottom fell out of them.

One of the 'bobbleheads' on CNBC TV said "This was a bolt from the blue." What ??? Dude !!! Were you sleeping as oil prices and inflation have been rising around you? And EU is riskier? And India is one of the worst affected on account of oil prices?

Where do the TV sites get these idiots from !!

The 'Dragon' deflates !

Et tu China !

As reported in news items today, China has suffered a major contraction in exports http://tinyurl.com/Chinese-export-drop

If seen in tandem with similar happenings in the last few weeks in Taiwan and Korea, this is all pointing to a general reduction in the well being of the regional economies. The key consumer (US) has been going through a wringer. How can the 'suppliers' not feel the effect?

The 'Tom and Jerry' market

. . . a.k.a. the Bombay Stock Exchange (BSE)

One of the lasting moments of the famous kids cartoon 'Tom and Jerry' is when Tom is racing on a flat mountain top, and keeps running when he has already crossed the cliff. A little later he realizes that there is no land under his feet . . . and that is when he just drops like a 'rock' . . . straight down.

In 1991, when US invaded Kuwait, the price of oil went straight up. The markets the world over reacted strongly, going into a tailspin - except ONE market. And that was the market of the country probably the worst affected by the increase in oil prices - India. For quite a few months, it kept rising . . .  and then the BSE had its 'Tom' moment . . . it saw it had crossed the cliff a while back . . . and dropped like a rock . . . for the next 9 (Nine) years !!

Fast forward 2008-09. Things just have not changed. The BSE has seen corrections, but is tenaciously sticking near 9000 . . . while the cliff has already been crossed . . .

. . . lets see when the BSE gets its 'Tom' moment in this 'Tom and Jerry' episode . . .

"Fox guarding the hen-house"

Or, how the US administration is allowing Wall-streeters to manage the $3 Trillion package

Finally....finally. Someone coming out to point to the charade of the package being given to career Wall street guys to manage - Henry 'Hank' Paulson and cronies. Paulson's recent rhetoric that he will 'Save' some of the money for the Obama presidency to take a decision, is total bull. The proverbial birds will have flown the coup by then.

http://tinyurl.com/marketwatch-com