It almost seems we are the epicenter of the financial earthquake that hit recently – at least it seems so, going by the intervention and hourly crisis management being done by the Government in India. But the fact is, we didn’t start the fire. We might have fuelled it, but that’s not the subject here.

Repo rates, Bank lending rates, CRR rate, Government Bond ownership, every bit of available instrument to help cash flow and liquidity is being done. And to support Indian sentiments which actually rules here more than figures, the intervention on “hiring and firing” by Companies, is helping calm already rattled nerves. Businesses must be free and have in their rights to right size, but also must demonstrate rationale and best practices in dealing with this issue. I can see that within a few weeks, restarting lending for White goods and cars and consumer items would be managed. All this is not bad. Don’t forget, the wound is deep and painful and to have done all this so quickly deserves credit.

Some say these swift actions is also election motivated – I believe it really does not matter. What matters is the intent and I see good intent.

I am not suggesting we are over the challenge- I do believe we will see more erosion in the months ahead, until we hit bottom. But these quick interventions will have positive results. And has ensured we don’t have a free fall.

Real estate and market indices are not the measure of an economy truly – look at value creation and GDP. While real estate prices that skyrocketed to unreal and undeserving levels corrected to as much as 30 to 40% and BSE Index climbed up to 21,00 to come down to almost 8000, our GDP still is moving forward, close to 6.8~7%. And if we can maintain these GDP growth levels and tame inflation down, India can ably demonstrate its underlying strengths.

It is always advisable to side step extreme conditions of fear and greed.