The Greek tragedy

First it was Iceland. It got financially ruined by investing in toxic waste assets generated by Wall Street. It ended up kicking ash, which disrupted flights across the European skies.

And now a Greek tragedy plays itself out creating ripples across the global financial markets. From a peaceful holiday destination and home to some of the worlds wealthiest, to a financial basket case did not take too long. Did they buy something toxic like the others, or did sell themselves short, or did some other genius from Goldman Sachs custom make the Greek recipe for disaster.

Italy Spain and Ireland may soon follow. And then the entire Eurozone is fair game for short sellers. Regardless of what the learned Pranab Mukherjee tells us, it would be naive to believe that India is insulated. We now swim or drown with the global tides, and as Mr. Buffet says, you can only see who is naked when the tide is low. And the global financial tide is getting alarmingly low.

Asset prices in India, across classes, whether it is real estate, gold or stock prices are all over priced and heavily dependant on foreign capital flows. Global money managers are becoming increasingly risk averse, and will also be under pressure to book profits in the few markets where they are in fact making money, India, unfortunately being one of them.

Duetche Bank is maintaining a price target of 22000 for the Indian market. Are they smoking he stuff that has been recently legalised in California and Colarado? Or are they planning to sell before the tide that is sure to wash up here?

It is better to be a spectator to the Greek tragedy, than have a lead role in the Indian financial tragedy that is buiding up.