Oh fellow/sororal Kahunas, of froth and bubble...leave off Clinton and his amours and get a load of this, from the Economist
Are we now at wave 6 a (iv) (d)...do we need diving gear? Feeling sort of uneasy...
...most emerging market borrowers outside Japan, Europe and North America are simply unable to sell bonds, issue shares or borrow in dollars. 'The entire market is, in effect, closed', says Tony Best, regional head of emerging markets at J.P. Morgan....
...Debt markets have simply seized up. The best indicator, the spread, or difference in yields, between American Treasury bonds of similar maturities has almost doubled since mid August...
...Equity markets, too, look awful...
...In the short term, new portfolio capital will simply dry up. This will force governments that would normally have tapped capital markets to tighten their fiscal belts and rely more on official finance...Paolo Leme of GS ...expects net capital flows to all emerging economies to be $120b in 1999; in 1997..was $247B
Nancy, hum tumming a little tune in a sort of cheerful way..
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