Mumbai :Terror hits where it hurts the most

Adding to the original post I think we can expect the following in the days ahead.

1. The stock market crashes to lows never seen in the past 4 years. One may question why did the market hold up on Friday. The answer is simple. It was propped up by the institutions and the government. If the market had crashed 5%, the terrorist would've won. So basically the brokers traded amongst themselves and squared the deals at the end of the day. On Monday and the weeks ahead we will see massive liquidation by the FII's which will wipe out the most die-hard bull of the Sensex.

2. We may also see a rate cut of 200 basis points and loan interest rates can dip to 10%. Builders will use this cut as an opportunity to tout their ridiculously priced assets. As believers in black-swan theory will observe, the events of 26/11 will be the last straw which breaks the camel's back, be it the Sensex or the mega bubble in Mumbai real estate.

3. It doesn't take a genius to figure out that foreign companies outsourcing work to India will be more cautious and circumspect in their dealings. The binge madness of outsourcing everything to gain arbitrage will now to looked more carefully as to whether it affects critical business functions in times of disruptions.

4. India's date with terror will continue. The folks who commit these crimes have no regret, remorse or a living conscience. They are so blinded by hatred that it will be only time before another attack of a similar magnitude is mounted on Mumbai or some other city. To deal with this situation we need the Army to run security operations in major metro areas. The police is too corrupt and incompetent and pictures of pot-bellied policemen hanging around the Taj as mute spectators are a disgrace.

5. The cocky behavior the many South Mumbai-tes will now be a thing of the past. I distinctly remember a recruting pitch made to me by a just returned US educated individual way back in Jan 1993 when I went to meet him at his apt in Malabar Hill. He said "The tile you are standing on is worth 30000 Rs", effectively telling me that he has deep pockets. That day was an eye-opener to me on the sheer arrogance which was a part and parcel of some people who live on prime real estate.

I can go on and on but I'd like readers to comment on the aftermath of the siege on South Mumbai.

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As Mumbaikars assess the extent of the damage to lives and property in the attacks of 26/11, it is the healing of psyche which will be in question. While previous attacks have targeted densely populated areas like railway stations, temples and mosque's these attacks have been focused on the rich and elite in South Mumbai. This affulent area is home to less then a fraction of Mumbai's 13 million population, and now appear to be as vulnerable to the crossfire of terrorism as the average mumbaikar.

Lets hope the government wakes up to this tragedy and shakes up the law and order machinery. If an attack of this magnitude is replicated somewhere else, we will have ourselves to blame. A lone fire engine battling the fire at the Taj hotel speaks volumes of the lack of preparedness to handle emergencies.

I hope all readers and their close ones are safe. Our thoughts are prayers are with the injured and the unfortunate victims of this massive tragedy. MumbaiHelp has more coverage on this issue.