rogerk2

An Outcry from Emerging and Developed Markets Alike

My view:

1) Hedge funds put a lot of money in emerging markets because of their growth potential. The funds are now withdrawing investments, taking profits where they can get them, to pay for mounting redemptions. Every market tick down now equals 10 ticks up on the margin call meter, and all that leverage has to get paid down quickly.

2) My biggest fear is that, if the coordinated response to the global crisis actually works, it will "justify" consolidation of the global financial system under one central body. That body won't be the World Bank (nobody trusts them), but it could be a global oligarchy of the few "too big to fail" banks left standing - a global shaddow government controlling worldwide commercial activity through its control of credit.

And, it'll be basically the same guys running the new global financial system as screwed up the current "national" ones. A global meltdown of the existing systems sure seems convenient, if the plan is to build a new consolidated global system for fun and profit. At least, it should give all the "new world order" conspiracy theorists something to chew on.