Lot of talk about India and China in the papers. US VCs and technology companies cannot stop raving about China. A little reality check! The divergent paths Bombay Stock Exchange and Shanghai Stock Exchange have taken. An old editor of mine used to say – pay attention to the ticker, the ticker can see the future. The breathless growth of China leaves Indian 4%-to-5% annual growth in dust, but short term money seems to think otherwise. These two economies have a direct bearing on the US economy – both in good and bad way.
Sramana Mitra: “It looks to me, therefore, that US, Europe and India are all headed for trade-deficit economies, while China reigns supreme as the trade-surplus nation.”