There is going to be a second vote for a newer plan which would take care of the concerns of those senators who cried foul the first time. The gravity of situation is such that no skeptic can really afford to be solely resposible to see the bailout effort stopped in track as no body has an idea as to what would happen if the plan is not approved. The ones pressing for it have told that it may work and without it the disaster is awaiting. If is really difficult to fathom the depth of crisis or rather it is fathomable but the analysis would reveal such ugly facts as would not be likeable to any body. Who wants to know the gory detail of rape scene and what has happened is no less than a gang rape of the financial system in USA.
How far is India going to suffer supposing the administration of the concoction fails to help the ailing financial world. I think India will be impacted but not in terms of corporate performances. The sell off may destablise the stock markets for some time but since there has been too much harping on this subject that the stability will soon revert.There is another point to consider. India still is not a high cost economy and USA is. USA has to be economical in living style and production systems. In the end the present and future pensioner will suffer more because the values of currencies has to be diluted to save the world borrowers . The lenders have to accept some lower value returned to them while the countable currency not may remain the same. As I told a long time back the excessive saving pool should have seen the interest rates almost negligle as it happen in Japan but the lenders pressed loans with a view to earn higher interest from anybody who seemed to be welcoming the loan. Now its them to be ready to receive less in value terms. The housing prices have to improve which is possible with injection of capital or say raising of money stock. It will not only the housing prices go up it will make price of every thing go up. You may have noticed gold prices going up before even this has been done. Is it not dilution of value of money named as dollar, rupee etc.
Indian market as also European markets have closed better by slight margin. DOW open low , went down lower and is not at par at this very hour. About a few minutes from now the congress will start debating the fresh ‘bailout’ plan and vote for it.