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

To: THE ANT who wrote (101222)	6/19/2013 12:25:04 AM
From: elmatador	Read Replies (1) \| Respond to of 218110

The stabilization was bought by the QE tax that removed interest income from the economy. If income interest is put back by removal of QE, fleece will ensue. That's what I read by reading both articles in tandem. Thanks for throwing the clarification in the middle of the noise.

To: THE ANT who wrote (101222)	6/19/2013 12:41:40 PM
From: elmatador	1 Recommendation Recommended By Hawkmoon Read Replies (3) \| Respond to of 218110

The Massive Shift In The Global Financial Markets In One Chart Fed commentary about its QE policy led to widespread selloffs in EM assets," SAM RO JUN. 19, 2013, 10:12 AM 1,590 1 Emerging market stocks, bonds and currencies have tumbled as money has fled those regions. This has occured as interest rates have rallied in the U.S. "Adjustments in core rates markets driven by Fed commentary about its QE policy led to widespread selloffs in EM assets," note Barclays Christian Keller and Koon Chow in their new Emerging Markets Quarterly report. "This has raised fears about whether investors could abandon the asset class and trigger “sudden stop” scenarios as they prepare for a post- QE world." The "sudden stop" is the nightmare scenario where an economy is effectively cut off from the credit markets. Judging from the magnitude of the drops, you can see why people are freaked out. However, Keller and Chow think it isn't the end of the world: " In our view, we more likely have entered a “long transition” towards a normalization of core market interest rates, in which episodic price corrections can create selective opportunities in EM." From Barclays: Read more: businessinsider.com