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A comment about Hong Kong

     Hong Kong’s case is interesting. The crisis for Hong Kong was not a crisis; it was a small recession. There were not bubbles or bankruptcies. And the recovery from this recession in Hong Kong has already begun, by good steps, driven by monetary stimulus from the government and the hand of his father (China).  

     The policies implemented by the monetary authorities of Hong Kong are a proxy for the U.S. policies (since many years). They have increased and decreased interest rates in the same way that the FED has done (always with 100 to 50 bps of difference), they have expanded the monetary base at the same rate and time than U.S. (but now Hong Kong have increased it proportionally more than the U.S.), and both exchange rates behave very similar (the Hong Kong Dollar with less volatility).