The happenings in the Italian bond market, the third largest in the world, are getting scarier. Unless the political scene there gets fixed with a PM who inspires confidence in the markets and European Central Bank comes up with a big enough emergency fund, the world economy and global markets would be on the edge. After Italy, it will be the turn of France. For India, the biggest challenge will be the rapidly declining rupee as dollars move out of India. It is already at a 3-year low I believe. This means more inflation among other miseries. Like my previous visits to the All India Radio studios, yesterday I was asked about eurozone in their popular stockmarkets programme.
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