Emerging market crisis

banking system and the Crises were for countries with immature economies, insufficiently developed financial systems, and weak political systems, which had not yet achieved long-term stability--countries like Thailand, Indonesia, and South Korea. These countries had three main characteristics that created the potential for serious instability in the 1990's: high levels of debt, cozy relationships between the government and powerful individuals in the private sector, and dependence on volatile inflows of capital from the rest of the world. Together, these ingredients led to economic disaster. Debt-fueled booms, collapsing bubbles, and panic-stricken financial systems were all reminiscent of the Crash 0f 1929, but the conventional wisdom was that the United States had put these growing pains behind it, thanks to strong corporate governance, deposit insurance, and robust financial regulation. Emerging market crises were an opportunity for the United States to teach the world how to deal with financial crises. Few people suspected that, despite the many obvious differences between emerging Asian economies and the world's largest economy, some of those lessons would be relevant to the United States only a decade later.

Source: Cappola2.0

Edward Elgar Pub The Political Economy of Trade Reform in Emerging Markets: Crisis or Opportunity?
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Soros has slammed US Treasury Secretary Hank Pau

2008-09-17 12:45:33 by MasterOFDisaster

Billionaire investor George Soros has slammed US Treasury Secretary Hank Paulson for behaving in the same manner as bankers in the 1930’s and mishandling a financial crisis that threatens a repeat of the Great Depression.
Soros told BBC Newsnight that the world was merely at the beginning of a financial storm and warned, “We mustn’t allow the financial system to collapse as it did in the 1930s.”
Referring to Hank Paulson, the US Treasury Secretary, Soros stated, “The way Paulson is handling the situation is reminiscent of the way the bankers handled it in the 1930s.”
He added: “The financial system has gone overboard and the financial engineering has grown to big, it takes up too big a share in the world’s resources.”
“Now it is shrinking. When it becomes...

The euro union has long been falling apart  — Financial Times
But, he adds, “the exit from the euro should be looked at as an emerging market crisis, where countries defaulted on private and/or pubic debts, abandoned pegs or managed exchange rates, and devalued. The euro merely overlays currency exit to what is a …

In tough times, should investors turn to gold or cash?  — Business Day
Gold is an asset where one needs to look at the economic circumstances such as the emerging-market crisis where monetary and fiscal policy shifted to things such as 0% interest rates, currency debasement and quantitative easing to try to resolve …

Palgrave Macmillan The Political Economy of Emerging Markets: Actors, Institutions and Financial Crises in Latin America (Sciences Po Series in International Relations and Political)
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