Mkt crash: CPI-M blames UPA

New Delhi: Describing the crash in the stock markets as a "bubble that was bound to burst", the CPI-M hit out at the UPA government for not taking adequate measures to check speculation by the FIIs and safeguard the interests of small investors.

"We have been warning the government of the artificial rise in the stock market. It (the crash) is only corroborating what we have been saying. It's a bubble that was bound to burst. The small investors have burnt their fingers," said CPI-M leader Rupchand Pal.

He alleged that the American fund managers were "pressurising" the government on policy matters like definition of traders and investors.

"That is why if it is cold in the US, we tend to sneeze," said Pal.

"Even the steps taken by the regulator SEBI are too inadequate and too late", Pal, accompanied by his party leader in Lok Sabha Basudeb Acharia, said and added that the crash was not a "correction".

Maintaining that the stock market did not reflect the economy, Pal said the IPO scam had also exposed the vulnerability of the share market.

Charging the Government with having failed to fulfill its promises in the Common Minimum Programme (CMP), Acharia said, "two years is not a small time" and the UPA Government has not done much to implement issues affecting the poor and middle class sections of the society.

"We repeatedly cautioned the government that the reckless path of liberalisation and disinvestments will be disastrous for the economy."

"Look at the experiences in Italy, Germany and the Latin American countries," pointed Pal.

He and Acharia said the Left parties have been trying to help the government to keep on the right track. "But they are bent upon going astray," he added.

Asked whether they would be attending the celebrations of the UPA on completion of two years of their rule, Pal said "we are not prepared to swallow their agenda. That is why we are not attending the function where they will release the book on their achievements."

"However, the Prime Minister has invited us for dinner which we are going to attend. But we will not be party to their celebration", he said.

Acharia elaborated several issues on which the government had not implemented the provisions in the CMP.

These included a legislation to provide social security to workers in the informal sector, rise in prices of essential commodities, disinvestments of PSUs like BALCO, failure to check hoarding and speculation in the commodities market.

The CPI-M leaders said it was due to intervention by the Left parties that LPG and kerosene prices were not hiked when global crude prices sky-rocketted.

They also pointed towards the government's "failure" to bring the Women's Reservation Bill and on foreign policy count.