Economy ::
India is facing a cash crunch. Businesses that have tons of money are sitting on it and not lending anything to anyone. This came after Modi's new bankruptcy law which allows businesses to legally not pay back, if it can't afford to.
That turned the market and GDP down. Which now is hitting 5%.
And today's news : cash crisis hits US. Repo rate, the rate banks loan money from central bank suddenly exploded yesterday. So much that Fed cancelled and stopped all transactions at one point blaming "technical difficulty". Later it resumed and Fed had to inject $50 billion into the system.
- Comments:
- https://edition.cnn.com/2019/09/17/business/overnight-lending-rate-spike-ny-fed/index.html
- Falling apart is India's economy. USA is still going strong.