Another sunday 16th july.
All news channels celebrated sensex crossing 32000.
The domestic investors are happily pushing their money into the market believing in get rich fast theory.
Most foreign investors are withdrawing with domestic investors replacing them.
One should reflect who is right ?
If one looks around the economic scenario is depressing.Rural distress , manufacturing contracting,IT layoffs, higher cost of cinema tickets, tomato prices skyrocketing, GST
getting applied to telephone bills, articles of discretionary spending, empty malls, gold prices shooting up.Is there anything to cheer.Women are shouting about GST on
sanitary napkins is the news of the week.
Is stock market a bubble waiting to burst?.
There appears to be a disconnect between economics and ground realities.
The rich in india are pumping in more money into the stock markets and talking acche din . Stocks are touching new highs never seen before.
Similarly when demonetisation took place, all economists thought it was a disaster. But the poor celebrated as they saw the well off upper class folks suffering due to their
stashed away high value notes.
Then GST introduction , most common folk asked what is there to celebrate at midnight to pay tax.LOL
When some gave economic logic that GST will lead to faster movement of goods and items will become less expensive, most found that neither goods moved faster nor they
paid less for goods they normally buy.It was only more in most cases.
Those who loved their money decided not to buy anything before prices settle down .
I do not know whether they will ever settle down.
I take anything an economist says with a pinch of salt.
TN politicians and economists are losing their reputation in new india.