Well, How appreciation happens in real estate? Suppose you have 1 acres of land & you study the market rates, deciding to sell your 1 acres of land for 10 laks! Now you call up some brokers & says you are gonna sell this 1 acre, contact me if you have some parties in hand!!

PART 1.

5 or 7 ppl comes to visit your place & suppose if all ppl liked it (i mean ur property) – then DEMAND increases ..rite? When all ppl are ready for a deal, you will increase your price…rite? You will say, everyone liked it so for a deal I will sell it to the one who pays 12 Laks!!…so appreciation of property happens!!

PART 2.

If govt. declares like they are planning a Highway through the roadside of ur ppty, or some kind of big institutions like IIT is gonna happen there, or some public industries are coming near by, normally DEMAND for ur propery will increase…which will increase your properties valuations!

NOW DEPRECIATION WORKS JUST OPPOSITE!!

LESS DEMAND – LESS PRICE ! – FUNDAMENTAL RULE OF ECONOMY

The fall in the price of rubber have another reason also: The low crude oil price! This may increased the production of artificial rubber. But we know the why the crude oil price is decreased.

I have a doubt. Let us take the case of Mr. X. If he spend more money to buy luxury goods, will it cause a BOOM in such Industries? and this money may go to some banks…(?)

one more thing, How the a sudden drop in real estate happened?

Any way, Let us hope for an ‘opposite reaction’ to this financial crisis.

Your observation is right….The “High” value of dollar will increase price of electronic goods…not such goods alone…it will increase price of all IMPORTED goods!!

What happens in the stock exchanges is actually “Human Created”

The FEAR in people abt the Global Crisis & its impact, its effect, many hypes abt this global crisis, rumours like this crisis will KILL the global economy etc forces ppl to SELL their stocks @ the earliest!

At this point the number of SELLERS (SUPPLY of stock) will be very HIGH compared to BUYERS (DEMAND)

Abundant Supply & Low demand will squeeze down the share prices…& this will affect wholly & the SENSEX point will go down…& down…& down!

What happens in the Stock market is based on assumptions & guesses…its actually a “guessmarket”

If P.Chidambaram (Financial minister of India) makes an announcement today that…”Govt.of India guarantees all deposits in Banks”….am damn sure SENSEX will cross Ten Thousand points in one day….

Your calculations are TRUE! comparing the Dollar-Rupee conflict! My generalisation on the decrease of Rubber price was based on some facts!

1. There exists a Financial Crisis & it affected the production already in US & its breeze started to shake globally too.

2. Crisis will always lead to “LESS DEMAND” for not very necessary needs like Automobiles

What you have written is the diminished value of Rupee will push the US people to import more rubber…rite? but what if Rubber is in Low demand due to low sales of Cars, Bikes, & other goods….?

I said price of Rubber will go down based on “LOW DEMAND” & “EXCESS SUPPLY” & its a fundamental rule of economy that DEMAND DIRECTLY IMPACTS PRICE (based on Supply)!

Present stats shows that my observation is right! When I wrote the post PRICE of Rubber was Rs.93 & it again decreased to Rs.85 now.

The fact that you stated above was apparently obvious, yes Indian IT industry will going to be in recession for at least next four quarters .How this financial crisis around the world will affects Indian economy?. The answer is quite straight forward 30% of Indian IT sector was absolutely depended on U.S banks and other financial firms.

How it will affects our economy , the expected GDP rate of 9% for the next financial year (if am not wrong ) will fallen to 7.2% as per the reports . We all aware about the fact that the inflation was hiking for the past 5-6 months, this indirectly affect the value of indian ruppes to the dollar tremendously .

Since this fact remains i just wonder how u came to the assumption that the price of rubber will fall . Let me show you some calculations.

6 months before

US$ 1 =35.50 RS , The price of rubber was 100
if US want to import 100 kg of rubber they must spend Rs 10000($281.7).

now

US$1= 49 RS the price of rubber is 90~100

same amount of rubber will cost them 9000~10000(183~204)

Dont you think this will attracts more US company’s to import rubber from India . From my perception it will boost the indian rubber industry . More demand for the commodity will make it expensive . However , though the Rubber price increase, US will still afford to buy rubber from india . Just because of the fact that inflation affects the the value of indian rupees against dollar.

Just to share some thing interesting with you . For the next few quarters economy will be in “L” shaped recession (imagine L graph , which drop down dramatically( we saw that already) and maintain in the same level for a while) .

Talking about markets , During the recent financial crisis stock value of many companies dropped down dramatically as well . So this fluctuations in the market will make a share holder to sell their stocks before it end up in a loss . So market will be filled with sellers , you may only find a few people to buy the stock , who are commonly categorized as active investors . This all “X” factors will put market in to recession . Many market will cease their trading and many of them will find themselves in a dilemma to buy or sell or keep.

The price of the commodities(especially electronic components) will rise soon.For example consider a foreign good of 3$ ,it valued 120 RS before but now it values
147 RS.SO This will reflect as an increase in PRICE for foreign commodities.

Another one news which I heard was that The Country ICELAND is almost trashed due to this crisis.Iceland was a wealthy country till before 1 year and now it has became one of the most poor countries in EUROPE.They’ve started begging for money after other countries!