. But where are the funds coming from ?
. Who will be the depositors ?
. Bank means liquidity. Withdraw able,
. Or like a fixed deposit.
. Why Infrastructure Bank ?
. Because Government is unable to print some more money.
. Usually infrastructure is the last resort or ace card during recession.
. And it would be no different this time,
. Only that the government cannot be te sole player to stimulate the economy.
. Thus it requires Private money to fund the infrastructure bank.
. Where that fund going to come from ?
. From other asset class. Equities, Gold....
. Insurance and Pension money.....and sovereign funds
. There will be a push up for Insurance and Pension money to get out.
. Why are the banks laggards ?
. Why are the banks stocks kept artificially low.
. It's going to be the biggest impetus for the push up.
. Infrastructure is a slow cook.
. Slow to materialize. Good for institutions like Sovereign fund and Insurance,
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