Tom,
Is that a recent article?
If so, I feel Sachs to be ignoring what's happening in "China, Hong Kong, and Argentina". While these three are having serious problems, in comparison with the other emerging markets, they appear to be riding out the storm much better than those emerging markets without pegged currencies.
Of course, that's probably why you posted the article - to get me to state the obvious.
Description of last week's Annual Meeting for my largest HK/China investment was 'cautious optimism'. (Over half of their assets are in $US with no debt) Some customers are reducing orders, but others are increasing and they are seeing new customer visibility. The fears of a falling yen and other currencies were not warranted as they found they can compete without lowering margins. New and existing customers switching away from unreliable financially strapped suppliers.
Already seeing Schumpeter correction as well managed companies taking business from those going under. There will be less demand, but fewer suppliers as the weak are weeded out.
JMHO,
Ron
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