Why was India not affected by the economic recession in US?

failures of freddie mac , fannie may had no effect on indian banking sector, there no need foreclosures or withdrawal of business loans. indian banks have been controlled more closely usa sector, , have not engaged in risky derivative debt-instruments. didn't buy shared risk on foreign mortgages , other loans.

secondly, indian resident population continues increase. therefore, there pent-up demand consumer products, household goods, food , on. there great reserve of "hidden wealth" in india, financial , precious assets (jewellery , gold) not held in banks or declared on returns. hidden wealth has continued finance economic activity, , velocity of circulation has been sufficient maintain rising purchasing power.

finally, foreign companies find india useful country in base customer services and, in cases, assembly plants. typical employee , infrastructure costs lower in europe, north america or australia. still case. offices , plants have closed down have been linked failing corporation in usa, in main. otherwise commercial benefits continue.

problem in usa credit crunch lay in fact of money did not exist in first place. comprised loans corporations required them fraction of value. mortgage-bank needed hold $12 every $100 lent out opening new account customer. bank balance sheet appears have $100 of assets in loans debtors. can lend more on basis of apparent asset base on balance sheet.

if large numbers of people mortgages find can't keep payments then, in principle, $88 of every $100 can wiped off value of bank. they'll never , have little in safe (so speak) in real money. situation multiplied in other countries because banks allowed buy of mortgage-debt (like buying iou can interest), , repayments on long term. european , other banks lost out when mortgages went default in major way.

indian banks not party these deals. reserve bank of india did not permit it.

ok?

i think therez account money in u knew u in recession here nobody knows tax money goes ignorant..is right>?

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