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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (40019)	9/18/2008 8:32:52 AM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 217997

It will operate within a band 2.15 - 2.85 BRL per USD. if you say so, chief. Emerging Markets Become `Toxic' as Reserves Drop: Chart of Day By Alexis Xydias and Mark Gilbert Sept. 18 (Bloomberg) -- Falling currency reserves will stall emerging-market growth and turn assets linked to developing economies into ``toxic waste,'' according to Albert Edwards, global strategist at Societe Generale SA in London. ``All things connected with emerging markets will become toxic waste,'' Edwards wrote in a research report today. ``The emerging-market liquidity squeeze will intensify ferociously and, much to the shock of most commentators, recessions will unfold in the emerging-market universe.'' The CHART OF THE DAY shows the drop in Russia's reserves to a three-month low, along with the slump in both Russia's stock market and the MSCI Emerging Markets Index. The decline in commodity prices and stronger U.S. dollar will weaken the foreign-exchange holdings of emerging nations, according to Edwards. Rising reserves have fueled growth in Asian, Eastern European and Latin American economies in recent years and boosted their local equity markets. ``Amid recent chaos, few realize that the next phase of de-leveraging has only just started,'' Edwards wrote. ``A key pump for global markets and emerging economies -- global foreign-exchange reserve growth -- is only now beginning to reverse. All things emerging-market related will crumble as the great unwind moves into a new phase.'' Edwards, who correctly anticipated the Asian currency meltdown of the late 1990s, and his colleague James Montier have been voted best strategists in Europe's Thomson Extel Survey for the past five years.