China has announced a rescue package of around $586 Billion Dollars close on the heels on America's $700 Billion Dollars package. India's has also tried to infuse lots of liquidity in to its financial system, through lowering of Rep rates and boosting government spending but the enormity of situation demands some radical approaches. The great fall will stabilize and journey back to the upward slope of the curve may take about 18-24 months. There is lots of potential in economies of China and India. They will continue to grow at 8-10% range. World economies have to knit themselves in to one single mesh and synergize their operations. The great US economy cannot just stand and watch India and China to take the center stage. US would like to be very much involved in to the action.
More importantly since world economy is integrated today, it will be better if everybody joins hand and work towards getting economy back on rails.
- America should ask its banks and mortgage companies to renegotiate deals.
- America should find ways to re-plan the loans of house owners who are defaulting.
- Government should enhance its spending in China and more specifically in India.
- Real growth can take place only in India as lot of infrastructural deficit is discernible.
- American and European companies can come to India and be part of its growth.
- To cut costs western world should continue to outsource their operations to India and south pacific countries.
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