Would Subprime crisis slow down the inflow of Foreign Direct Investment (FDI)?
The US real estate market is in tizzy because of the high default rate, known as the subprime problem. There are apprehensions that it might affect the Indian market as it would slow down the inflow of funds from outside.The (US) fund manager cannot sell the portfolio of an investor, who wants to invest in the Indian real estate market to compensate the loss of other investors in the subprime market in US. Therefore, he argued that the US sub-prime would not have any impact on the Indian real estate market.
Therefore, the banker argued that apprehensions that the fiasco in sub-prime market in US would have an impact on Indian real estate market is completely unfounded.
At the worst, it might have some effect on the stock market.
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so you are suggesting subprime won't affect india! but dont banks like sbi and icici invest in foreign cdo's??
ReplyDeletewhat is the situation of subprime loans in india??
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