UPA show on for some more time

Thanks to the help from Samajwadi Party and many cross-voters and abstainers, the UPA government has survived the no-trust vote and managed to get rid of the Left at the same time, never mind the usual democratic processes of horse trading. The BJP and Mayawati are sulking, BJP has expelled most of its cross-voters, and as for the Left, well, lets hope they just disappear into nothingness. The past four years have been nothing but a spectacle of blackmail, browbeating and holding the economy to ransom.

The markets have taken this win very positively, the Sensex has touched the 15,000 mark, and for all the gloom and doom of the previous months, there is hope that finally the UPA government will start doing what it said it would do on the economic front. I doubt that though, that a few more months left in office will be enough to the blunders they have committed in the past four years. I have already said that while the sun was shining, the government failed to make hay, be in terms of oil security or bringing down the subsidy bill. In fact, they added many more billions to it.

PC has said that he will push forward with the financial sector reforms, and everybody, I am sure, is just hoping that this will maybe, just maybe, sooth the fragile nerves of our fickle market. Lets not forget that the crude prices have been declining, and even though the markets still ended in the red today, the more than 5% rally in 5 days seems like a good sign because even this break was due to profit selling.

Coming back to the topic, can the UPA really deliver in its last leg? Can it make up for the lost opportunities and mistakes of the past years? Of course, the headline of their tenure, the Nuclear deal with the US, is going full steam ahead. I just found this article on what the Con'gress is upto in New Delhi!

Cong floats 'nuclear balloon' as panacea for aam aadmi woes

What chocolate is to love, balloon is to joy. Kilos of air trapped inside sheer, colourful rubber, the floating toy can easily evoke a squeal of joy from a fretful child, even enthuse a grandfather.

But the giant balloon posted below the tamarind tree outside the Congress party headquarters on Akbar Road, is less an expression of joyfulness, more a statement of intent, a peepshow into the party's electoral mindscape.

Almost as tall as a giraffe, the synthetic balloon is dressed in the Congress colours of saffron, white and green, the same as the national flag minus the Ashok Chakra. But interestingly, another balloon, in the shape of an atom is wrapped over the original inflated object.

On one side is written in bold letters: Sasti bijli, sabko bijli, parmanu bijli karar (Cheap electricity, electricity for all, nuclear electricity deal). Obviously, the N-deal will be packaged as the key to cheap electricity in the Lok Sabha polls whenever they are held.

This seriously takes away a lot of my enthusiasm for the UPA victory, because if they really believe that nuclear power will take care of most of the 'aam aadmi's' need for power, I don't know how many nuke plants they will have to put up in all parts of the country in such a short period of time that it brings back political gains. The power policy has never taken off, and till they take care of that, nothing can happen. If they are expecting to sell very cheap electricity because it is nuclear energy, I think they will again be adding crores to our already loss-making energy production setup.

Also, I came across this particle about two Wall Street biggies doubting the government's ability to deliver. I will have to be critical of my own choice here because I doubt the ability of Goldman Sachs and Citigroup to advise on economic issues after the ruckus that's been on at Wall Street. Anyways, since they are still big, still American, so still prone to advising the world, so i'll post it

Govt's ability to push reforms under cloud

Amid an euphoria that government would now push ahead economic reforms after winning the trust vote in Parliament and parting ways with Left parties, two of the most influential global financial majors, Goldman Sachs and Citigroup have expressed their doubts on this front.

In a report published after Prime Minister Manmohan Singh-led government won the trust vote earlier this week, Goldman Sachs noted that India would now have an opportunity to pursue stalled reforms, but the administration would have to deal with several difficulties in carrying out the process.

In a separate report, global financial services major Citigroup said that it remains to be seen whether UPA would be able to put reforms on the fast track or not.

"But whether it will be able to put reforms on the fast track and clear all the pending legislation is not a given as especially in politics, there is no free lunch," Citigroup economist Rohini Malkani said.

Outlining five factors that could "impede its ability to enact reforms successfully," Goldman Sachs said that the little time available for the government to complete its full term and need to placate and meet demand of allies who supported the regime in the next General Elections and the populism that may entail.

Fourth, the acrimonious discussions that took place between UPA and the opposition, especially the Bharatiya Janata Party, could lead to difficulties in passage of important bills.