Well, the economy is in pits. Every bank is sitting on the edge, and in an unenviable position waiting to spiral downwards. The problem is, it seems to be happening with alarming ease. Yes, the economy is in doldrums, to say the least. Well, that means, the Indian rupee should be gaining on the dollar right. But, contrary to that, there seems to be a reverse effect. The rupee is weakening by the day, and having fallen in the bracket of an NRI (you can use whichever acronym to suit your needs - Non Returning Indian, as in Swades, or Non Reliable Indian (as in monsoon wedding) doesn't make a difference to me, for me it is Never Rewarded Indian), there is always that selfish glint in my eye to see the dollar strengthening.
So, the common perception among the folks is, Oh, don't keep anything in the bank. Send everything back to India. This is the best period for you to take advantage of the dollar exchange. After all, you never know how long it is going to last. The dollar might go down any day. With the American banks falling in line everyday, you might not get your money back.
Another of those common statements, Do one thing! Why don't you buy an independent house in Bangalore? This is the best time to buy a land or a house. Invest all your money on the site.
All good so far, but what I really don't understand is, how come the dollar tree never grows in my house. Send all the money back to India. It is difficult to explain to most of them that money in the bank is insured by FDIC up to 100,000$, and for me to reach that amount, even by the most optimistic estimates, would take me more than single digit years. Transfer all the money to India, huh? When is my next pay cheque? As for building a house in India, it requires more than the FDIC insured amount, and that means well more than a 100,000$. OK, you are actually talking to the wrong person!!!
I don't know whether a dollar is 45 rupees or 46 rupees, but I still spend the same 6$ to get a burrito bol from Chipotle or one of the local restaurants here. It doesn't really make a big difference as to whether the rupee has gone up by a few notches or not. Life is still dependent on the fortnightly cheques. But somehow there is one aspect of the dollar going up or down that leaves me with a terrible feeling. It is always such that, when you are taking a loan from India, the dollar is perched at the top. But when you have to return that money, you can be rest assured that the dollar would have fallen from the top. It would have hit the depths. There would be the usual cliches - surging Indian economy, falling inflation, NASDAQ is doing great, the SENSEX hitting never before heard values and what not. You are paying your loan back at the worst possible rate. You just sigh, because you have to return at least a few thousand dollars more to get back to ground zero. And then magically, somehow everything hits a spiral, including the rupee, and now certainly you start to think, "Rupee is at an all time low against the dollar. Looks like God definitely has some plans for me. I am sure that it is a matter of time before I take a loan!!!"