India Boots Out Communists, Sensex Scores Largest One Day Gain Ever!

After a landslide victory for the Party of Prime Minister Manmohan Singh, India's stock markets went into a bacchanalia with a fantastic record breaking one day run!

According to Forbes, ``Talk about a post-election party. Indian stocks rose so fast on Monday that trading had to be halted.

``The market was euphoric over the Congress party's unexpectedly strong showing in India's national elections. Congress' unexpectedly strong majority means the party will not have to compromise by forming another coalition with leftist parties, which the business community blames for slowing down India's much-needed economic reforms." (highlight mine)

Bespoke Invest observes, ``the next biggest one-day gain came in March 1992 when the index rallied 13.14%. From its peak in January 2008 to its recent low, the Sensex dropped 60.91%. From its low, however, the index has now rallied 75.04% in just over two months. Even after this 75% gain, India needs to rally another 46.13% to reach its old highs."

Both Charts from Bespoke.

So while emerging markets seem to be embracing globalization, even in the face of the present crisis, developed markets appear run on the opposite route.

Needless to say, decoupling dynamics seem to be surfacing even in terms of political trends!

North Korea: The Land of No Smiles

View the slide deck of pictures which depicts the gulag-like experience of North Korea taken by Tomas van Houtryve and posted at the foreignpolicy.com by clicking here.

From Foreignpolicy.com's Land of No Smiles

``Renowned documentary photographer Tomas van Houtryve entered North Korea by posing as a businessman looking to open a chocolate factory. Despite 24-hour surveillance by North Korean minders, he took arresting photographs of Pyongyang and its people—images rarely captured and even more rarely distributed in the West. They show stark glimmers of everyday life in the world’s last gulag."

Hat Tip: Mark Perry

Jessica Hagy's Indexed: Crony Capitalism and Oligarchy fits the "Gap"?

In Jessica Hagy's wonderful Blog called Indexed, she makes an eloquent depiction of how a "banana republic" seems caught between the influences of communism and capitalism...

where she describes "A" as represented by Fidel Castro while "B" as the "Gap"...

I'd like to fill in the "GAP"..."Crony Capitalism" and "Oligarchy" seems to fit the bill. (see preceding blogs)

P.S. We also don't have a shortage of "A" or "Castro" wannabees...I mean, here on this island. Just watch the local news headlines and you'll know what I mean.

Hat Tip Jessica Hagey