I wanted to know how does India get benefit from the QE3(Quantitative easing) which was announced on 13 September 2012 what is the relation between Housing market over-supply and QE3.
And what is the reason for which America is always near to recession everyear as announced by Barrack Obama each time why do they bailout despite of being one of the strongest economy in the world , I understand that banking i.e CENTRAL Bank has a great role to play here than how come each year they commit mistakes.
QE3 will not help india directly but indirectly as there will be money at low rate it will flow to our market and should increase the stock market
Here I understand that Central Bank will bailout money so huge money will be available but coming to your point that “money will be available in low rate” is due to the Rs/$ foreign exchange rate.
And lastly If the Central Bank infuses Capital than instead of making their economy strong why will they invest in our market and make it strong. KIndly reply Zion.
Money will be available at low rate mean people there can invest and earn even low.
For example if you can loan a amount at 3% then putting in banking will earn you at less than 3% ,say 1%.
Now you have money at low rate and you have market like india were we can earn around 7-8% hence they come here even if there is a risk of rs/$ rate.This is very macro concept which is tough to explain
Thanks I understood.
You need to give more information , this QE3 is totally new for me !