Sensex headed for testing 1000 – India plunging into deep depression

The pendulum has swung in the other direction. The bubble burst is not funny. India has just started to plunge into a multi decade deep depression. Most likely India and China will join hands to revive their economy through an Asian free trade zone. But still the effects of the global financial meltdown will hurt every Indian, rich, or poor, native, or expatriate.
Sensex has closed below 9000. It is headed deep in the South below 2000, perhaps 1000. As the American and European financial institutions flee the country selling their assets and taking their dollars and euros with them, the Rupees is plunging forcing the Government to look into devaluation of the currency.
India depression will felt deep into Indian villages. American financial collapse will cause deep pain in every Indian household. It is the Indian politicians that never understood the failure of American neo con policies. They blindly followed the America of George Bush. All that mattered to some Indians were American dollars, outsourcing money and the materialism of the effervescent culture.
Now is the give back time. The exports will collapse. The imports will also collapse. The foreign reserves will stop growing. Massive infrastructure projects will be needed to keep India’s large population employed.