Dear Editor,

I thank you for the insightful article in the September 16-30, 2007 issue of PV on the Home Loan Crisis in the United States. Articles of this kind serve to illustrate some of the important features of the present era. It illustrates that there is simply no escape from the iron laws of capitalism. Furthermore, I congratulate you on the simplicity of the presentation and simultaneously retaining the depth of content of the article. I look forward to reading more such articles.

Also of related interest is the issue of housing in our country, which is an arena of intense speculation. It also ties into many of the features of the macroeconomy and the orientation of the economy itself. It is well known that in cities such as Mumbai, Delhi, Chennai, Bangalore and Hyderabad that housing is increasingly becoming unaffordable for ever increasing sections of the economy. The availability of credit is generally at the high end, the takes of which are in lucrative sectors of the economy such as IT, Marketing, Sales and that of the Corporate world. One hears figures in Bangalore of private housing going for Rs. 4,000/- per square foot in apartment complexes, which is beyond the reach of any salaried employee. By signing into housing loans which demand massive monthly payments, sections of even those working in the lucrative sectors are signing themselves into bondage and insecurity. It is a matter of great uncertainty as to how long this can be sustained. The recent `strengthening’ of the rupee against the dollar is already exerting tremendous forces on the traditional lucrative sectors and no one knows how much further the dollar will slip. By allowing all kinds of financial institutions to speculate in the Indian market, the Government has let loose several genies out of the bottle.

I look forward to an elaboration of questions relating to such and related issues in the columns of People's Voice and on how the working class is to orient its work in this uncertain economic climate.

Sincerely,
G. Rajan, Chennai