FSA to increase liquidity among the banks

Recently FSA has passed a new proposal of increasing liquidity among the banks by nearly 110 million pounds. This can help the economy in a way that banks can have quicker access to cash and similar holdings in face of distress. I think this is a very positive step to get out of this crisis.

UK economyshowing no sign of real production growth

As per the news, the UK economy is showing no sign of real output growth which seems to be the most disturbing fact looking at the financial markets recovery. The financial markets are on their bullish framework and showing signs of consolidated growth over time. Is this growth justified when compared to a negative real growth in production?

This recession hit very badly to the framework of the working of financial markets. These markets are not presenting the correct picture of the economy rather showing false images by forming bubbles which burst quite often. This phase which is termed as the recovery phase might be another bubble engulfing many people in the trap.

There is a definite need of an hour to convert the technical valuation of the financial markets product into fundamental valuation. Until this happens, we can't see any sign of recovery phase of any economy.

The Indian Markets showing great fundamental strength in this recovery face of Financial crisis

Looking at the recovery of our Sensex and Nifty recovery reaching nearly 80% of what was lost in the crisis can be seen as the most fundamental driven growth. This trend might sustain itself to a new height and this growth should be looked after in the coming few years to come.

China's mindblowing reaction towards US treasury debt

It was believed that after the financial crisis, China will reduce its reserves in US treasury for financing their debt from this source. They started reducing their reserves in November 2008 when the US treasury yield was less than 3% but they started to buy a huge amount again when the yield started going up to 3%. So from July 2009, the China's demand for US treasury has started picking up again.

Why China's economy is trusting more on US when everything has proved to fatal in this crisis? This is an important question to look out for in future.