Non Congress governed states prone to less scams and bubbles

Looking at the ease at which Yedurappa made the announcement about $27 Billion dollars of investment makes me wonder if BJP is more business friendly then the pro-liberalization Congress party. Gujarat and Karnataka both BJP governed states have been attracting business investment by the likes of Tata and Mittals. Even Tamil Nadu under DMK has a good track record for being business friendly. Compare this to Maharashtra and AP under Congress and those two states have been under turmoil for years with scam after scam being reported involving the government officials and politicians. If one has to bet on jobs I would say Chennai and Bangalore would lead the job-growth in India for the next few years.

Here is IBNlive's article on the investment

Cement to steel, K'taka clears $27.5-bn projects

New Delhi: Karnataka has cleared 38 big-ticket projects worth Rs 138,000 crore ($27.5 billion), and hopes soon to finalise the mega investment proposals from global steel makers ArcelorMittal and South Korea's Posco.
Speaking to reporters after a meeting with the chairman of Arcelor Mittal, L N Mittal, Karnataka Chief Minister B S Yeddyurappa said these projects collectively have the potential to generate employment for 92,000 people in the state.
"Nearly 60 percent of these investments would be in north Karnataka," said Yeddyurappa, explaining that the primary focus of his government was to ensure development in the most backward regions of the state.

Read more

Strategic Defaults rising

John Courson, president and C.E.O. of the Mortgage Bankers Association, recently told The Wall Street Journal that homeowners who default on their mortgages should think about the “message” they will send to “their family and their kids and their friends.” Courson was implying that homeowners — record numbers of whom continue to default — have a responsibility to make good. He wasn’t referring to the people who have no choice, who can’t afford their payments. He was speaking about the rising number of folks who are voluntarily choosing not to pay.

Human Empire

Such voluntary defaults are a new phenomenon. Time was, Americans would do anything to pay their mortgage — forgo a new car or a vacation, even put a younger family member to work. But the housing collapse left 10.7 million families owing more than their homes are worth. So some of them are making a calculated decision to hang onto their money and let their homes go. Is this irresponsible?

Read more

Mall mania fades in Mumbai

Among the biggest developers to make this switch is realty firm Dynamix Balwas (DB Group), which shelved its ambitious retail venture to build the country’s largest shopping mall (over 10 lakh sq ft) in Dahisar after spending over a year planning and designing it.

The developer is now constructing low-income, budget homes on the land purchased for the Rs700-crore Dahisar mall, which was to be called Ozone Orchid. The group had earlier converted a mall project in Kandivli into a housing complex.

Orbit Corporation, a south Mumbai realtor, has also decided to convert a 2.5 lakh sq ft commercial development called Hafeez Contractor House in Lower Parel into a residential project. Ackruti City converted its more than 7 lakh sq ft mall space at Andheri into a residential and commercial complex. Dreams Mall, spread across

Mall mania fades in Mumbai