All signs point to a spectacular fall in the global stock market. FED just cut interest rate to 3.5%, that’s huge. Sincerely, I do not think that’s going to boost anything this time around. Buckle up boys’ crunch time is around the corner!!! I would say by June, we would be in a clear state to judge whether US economy is in a recession or not.
One good thing might be, India along with China and Brazil might be sought as an alternative to invest money. This could be a big test for Indian Congress government. Lot depends on how they work to gain consumer confidence. On paper at least, both Chidambaram and Dr. Singh have great economic background, we have to wait and see how they work this out.