The Indian Economy

For those keenly interested in the Indian Economy, like us, check out the interesting group blog called "The Indian Economy"

Here's a good post about China's pyrrhic victory in acquiring PetroKazakhstan:

The Chinese will come to rue the day that they “succeeded” in buying this company at an outrageous price. The taxpayers of India have been saved a huge amount of money since ONGC lost the bid. The bureaucrats are playing with other people’s money to inflate their ego on the global stage by overpaying for lousy assets. Fortunately, India lost this one.

A small change in the Electricity Act in India to reduce theft would do more to save money and enhance “national security” than any of these worthless projects in countries where the major private sector oil companies are rightly avoiding the action (and leaving the field for ignorant civil servants and want-to-be Napoleons in the diplomatic and strategic studies community).

Not having expored the terms of the deal, it's difficult to say whether China "overpayed", but I wouldn't be surprised given that it's government bureaucrats behind the deal.  Oil may rise unabated for some time, but we could just as well be at a top.  If so, the rashes of oil buyouts would at least be untimely.