Ok, Fed's fed-up with no real progress on the growth since the last QE (Quantitative Easing) of nearly a trillion dollars - so its' decided to pump in another 0.6 trn more into the system - primarily for buying debt of nearly insolvent organizations...not good - say many central bankers.
I was reading this excellent article through Mish, (you can read full text here). It points out that some countries, including South-Korea, China (incl. HK), and Brazil have already indicated in no unclear terms that they're deeply concerned about a lot of QEII money flowing into their currency and upsetting the finely balanced currency system (read appreciating local currency, lower exports, expanding trade deficit, coupled with lobbyists getting upset, and governments not seeming in control of the economy). So they've indicated a slew of measure to be put in place to ensure that the money doesn't flow-in too easily.
That said, the Golden Indian regulatory bird is yet to flutter its wings...and I don't think its sleeping...so I do expect some tightening in FDI policies sometime soon...timing is of essence here - considering a battery of PSU FPOs and IPOs lined up. If the markets get a whiff of such measures, its gonna tank - taking disinvestment targets out of reach for this financial year at least.
So Stay tuned...and stay nimble.
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