Crisis of Confidence??

As we all know about global financial turmoil and I wont write anything related to dis turmoil as it's getting boring.But wht i am reading everyday is crisis of confidence??But nobody is so confident in explaning dis crisis of confidence...!!!It's simple...Let's say you are living in an earthquake prone area....taking dis into account you have taken all precautions to make your house prone to any effect by earthquake...But one day as you cant control nature it occurs and your neighbouring house collapses....u knw that there is a thin hair chance of your house getting affected because of measures you have already adopted...even people who are staying as paying guests starts leaving your own house....but as a human nature u panic and plan to shift somwhere else....Now, the question is till wht time you be staying somewhere else...???Unless you are confident that there will be no earthquake which is not going to happen as u cannot control nature...d final alternative will be either to sell d house or return after you r confident abt ur own house!!!

Now relating this analogy with Indian Economy, an earthquake prone area is whole world, and d resilient place you are staying in your own country India.....As India has been always conservative in opening up of financial sector and liberalizing, she has always taken measure to make it more resilient against systemic risks....Financial crisis occured in US,Europe,etc i.e. your neighbouring countries....ppl know that their own house (India) is fundamentally strong but stil they panic and start exiting from equities market and other assets...Even paying guests (FII) have started exiting the safe heaven... Will dis continue forever..I certainly dont think so....As safety is always preferred against dangerous it will once again force these investors to return to Indian markets (their home) once they r assured that the current financial crisis effect is discounted in markets...

Hence, the bottomline is anywhere you go...u will return to your own place...coz nothing is safe in dis world except your place!!!!!!