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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 387.88+1.2%Nov 28 4:00 PM EST

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To: TobagoJack who wrote (40852)5/1/2009 7:55:32 AM
From: elmatador  Read Replies (1) of 218112
 
9 months later. How was the result of the test? Last August "slowing or shrinking export markets in the US and Europe will TEST the ability of emerging markets to generate their own domestic demand, and undermine those countries – particularly in Latin America – benefiting from the high prices of commodity exports"
Message 25041678

cut for today after 9 months passed:
How did emerging marlets passed the test?

Latin American countries have been hit by four different recessionary forces. As the financial crisis in the developed world transmuted into a collapse of manufacturing, trade plunged: total exports for five of the region’s larger economies fell by a third between August and December, partly because fewer goods were sold and partly because the price of commodities fell.

The flow of capital to the region also dried up, leading to a steep rise in borrowing costs for governments and companies. The Institute of International Finance, a bankers’ group, thinks that net private capital flows to Latin America will fall by more than half this year compared with last, to $43 billion (down from a record $184 billion in 2007). Foreign banks have trimmed credit lines, especially for trade. In addition, remittances from Latin Americans working abroad have begun to contract, and fewer tourists have come visiting.

All that hit LATAM. See the results:
economist.com

And I can tell you those GDP predictions are very volatile! This is a touch and go.

Plane comes down. Touch the runway and speeds up and takes off.
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