Not all bad in Hyderabad

Massive amounts of band-aid applied to Greece have enabled investors to feel more positive about risk assets. But there is still a high degree of scepticism about Greece with many feeling that it will still ultimately leave the Eurozone and that the current bout of cocoon-wrapping and debt write-offs are merely preparing the way for an eventual Greek exit. I'm not so sure. If I know one thing it's that nothing stays the same. What you see now in economies is for sure not what you're going to see in three years time. This is especially true after a crisis. Greece may well surprise. In the meantime, emerging economies are easing up on monetary policy. Brazil has cut interest rates more than anyone expected. In China inflation has halved in the past few months so stand by for more easier policy this year. This is the old-fashioned way of applying monetary policy - when things are booming hike rates so when things are cooling you can run 'em down again. India is also jumping on the bandwagon, with the Reserve Bank of India dropping banks' cash reserve ratio again this week. India has missed the boat somewhat with its lack of follow-through on economic reform. Congress Party is gripped by policy paralysis. But India is capable of chugging along at a 6% pace, even if not at the the ballistic rate that seemed possible just a few years ago. Over the past decade emerging economies have doubled their share of global GDP and it's likely to continue to grow for the another generation. The QSL is a classic from All India Radio Hyderabad heard in London in 2002 and signed by the much-beloved AK Bhatnagar. Hyderabad was founded in 16th century, now a city with a population about the size of Chicago.