It is no longer just a financial crisis. It's a full-scale economic crisis! - Eurozone and England are in big trouble.

I have noticed a disturbing trend in the past four or five days in India as well as in other part of globe. In India there was rumor that ICICI Bank is in trouble and people started flooding around their ATM machine to get their money back, thank GOD, I have taken more loans from ICICI Bank than what I deposits there (will I be able to get bailout in case if Bank fails:-).

But during my visit to New York last week, when I looked around, what I found is, an average, ordinary folks are skulking (One who hides, lurks, or practices evasion) by their banks, pacing back and forth and scowling, unable to get themselves to go in to talk about their money. They were not much interested in talking about their financial issues or condition of bank in their they deposited their savings. It seem most of the people in US are suffering from what we call "bankophobia."

Bankophobia happens when there is some kind of bad national economic news - that involves terms like "bailout," "inflated mortgage loans" and "insane sobbing in the conference room" - but you are so busy working to make money to put gas in your car that you haven't had time to investigate what is going on.
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HBJ Capital's Views for India Stock Market in Near Term......


In the near term, India stock market will be under the influence of global pressure, after US, focus will turn to European countries and aftermath of such a huge bailout package which might fall short looking at current financial crisis. What shall we do now?

1. If you are a trader just be in SHORT position or buy & hold PUT Option on Nifty.


2. For long term investors these are once in a life time opportunity but most of the core hearted investors doesn't have enought money to invest and they are unable to take out money from their existing portfolios because it is down 50% or more.

But you don't have to worry, downturn in the market is going to be there for little longer time, especially in case of India it will take minimum 6-8 months to start seeing recovery. So, earn money from you job and invest in good stock with earnings visibility.

But the biggest problem is.......when all the good or bad stocks at lower price look alike, it becomes more difficult to identify the next multibagger stock. For that you can refer our "10in3" stcoks or "5 best Mid-Cap from Mid-Cap Mela".

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Whether or not Paulson's plan works to restore confidence in the U.S. financial system, the controversial $700-billion proposal he's been trying to push through Congress is sucking up so much attention from the markets that developments on the other side of the Atlantic (Eurozone and England) are going relatively unnoticed. Fundamentals across the Atlantic point straight down. Not to forget that......

1. More than 11 billion euros were pumped into Fortis SA this week thanks to Belgium, the Netherlands and Luxembourg.


2. Belgium also teamed up with France in providing more than 6 billion euros to Dexia SA.
   Germany helped out Hypo Real Estate with a loan guarantee.


3. Ireland also stirred the pot in saying it would guarantee 400 billion euros of deposits and debts belonging to its domestic banks for a period of two years.

Everyone has been acutely focused on Washington — specifically, if and how the financial industry will get bailed out. The Senate voted to approve a revised $700-billion bailout package, one that's packed with all kinds of fresh pork and new tax cuts.

Now, this crisis is no longer just about the economy or the stock market or even your investments. The game is changing. Investors worldwide are realizing that the government's latest attempt at a bailout is simply too little, too late.

But the real fireworks aren't in D.C. — they're in the REAL economy. It's looking like a total disaster in the making. Just consider these:

1. The research firm S&P/Case-Shiller reported that home prices in 20 top metropolitan areas dropped 16.3% from a year ago in July.


2. Auto sales are down sharply, and industry layoffs are rising ... The layoffs aren't just concentrated at banks and brokers anymore, either.


3. Computer industry players led the list of announced cuts (25,700). Automotive firms were next at just under 15,000, with apparel companies (8,350) and financials (8,244) right behind.


4. Auto sales plunged 27% in September at the six largest automakers.


5. The latest personal spending figures from the government showed zero growth in August.


6. The ISM manufacturing index plunged to 43.5 in September.

This is no longer just a housing crisis. It is no longer just a financial crisis. It's a full-scale economic crisis!
-HBJ Capital Team