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On Fri, 15 Oct 2004 19:51:52 +0100, "Gabe Menezes" <[EMAIL PROTECTED]> wrote: > Subject: [Goanet]India to use FX to improve infrastructure.FT.Com > > http://news.ft.com/cms/s/096fc2d8-1ed9-11d9-9015-00000e2511c8.html > > India in precedent setting infrastructure move > By Edward Luce in New Delhi > Published: October 15 2004 19:37 | Last updated: October 15 2004 19:37 > > India is drawing up plans to use some of its almost $120bn of foreign > exchange reserves to fund domestic infrastructure projects in a step that > has no precedent elsewhere. RESPONSE: While India's infrastructure (especially transportation and power) need urgent attention wouldn't it have been prudent to invest those billions in buying bits of corporate America and Europe, especially companies that could participate in the infrastructure renewal. That way some of those billions would have been a lot more easily accessible and would have generated further wealth with their returns. At this time, I'm reminded of Enron's debacle in the Dabhol Power Company near Mumbai. I wonder how much of a "haircut" the investors and creditors have had to take on that project. Buying US T-bills only benefits Americans to drive their country further into debt as Eric pointed out a few weeks ago. Wonder what would happen if some large holders (Japan) of T-Bills suddenly decided to cash them in ?? Whadya think Gabe, Mervyn - our resident financial experts ?? Best wishes - Bosco --------------------------------------------------------------------------- Goanet - http://www.goanet.org - Goa's premier mailing list is 10 years old
