Let’s start with BeyondBrics this week who reported a study released by Lloyds TSB International about global housing prices which places India at the top of the list as far as rise in house prices are concerned. Prices in India grew 284% in the last decade while Russia was second with a 209% price rise.
If anything, this number will seem low if you live in any of the major cities, and one of the three big reasons cited for these high prices is the red tape that plagues land acquisition and permits to build houses.
On a related note, Financial Express had an editorial last week that cited a CMIE study which said that 8 out of the top 20 projects that were shelved last year were due to land acquisition problems.
The Rupee gained by a massive 119 paise today and that was triggered by a draft on GAAR released on thursday that was a lot better than the original version. While you shouldn’t make much out of a one day move, it does point to the direction that fixing underlying problems with the economy and not tinkering with things like NRE interest rates or debt limit are what will solve the current problems.
On the question of the Rupee – Jamal Mecklai talks about a range of 47 – 57 for the Rupee this year.
The Economist has an interesting chart which shows how much of a currency can be bought in a dollar.
Random Roger comments on some articles that spell gloom and doom and makes the small but important point that end of the world has always been a bestseller.
Finally, the question that’s been on your mind all week long – why does a zebra have stripes?
Enjoy your weekend!
The article ‘My money is bigger than yours’ was quite an interesting read. Its logical to feel better when you exchange your currency to get more of another’s currency. But in the real world it may not mean much unless we compare on basis of purchasing power parity. Thats why probably the Big Mac index really came about, which measures the amount it costs a person in different countries to buy a Big Mac Burger
I don’t think it is ‘logical’ to feel that way at all. Maybe we are wired to feel that way but that doesn’t follow logic and I think we should make an effort to get away from it as soon as possible and help others come off that mindset as well.