Where do you see the global ECONOMY in 6 months? Better or worse? Is the economy really bouncing back? Well it’s time we take a deeper look. If we accept mainstream thinking, we might as well believe anything. This however …
After the euro debt crisis, BBVA, Spain’s alpha-lender, sought greener pastures in the Emerging Markets. That bet is coming home to roost. By Don Quijones, Spain, UK, & Mexico, editor at WOLF STREET. Few, if any, global banks have bet as large, or …
by John Rubino This is the last emerging market crisis story for a while, promise. But one angle – exactly how a plunging currency in a far-off place affects supposedly stable markets like the US – is worth exploring because …
by Martin Armstrong QUESTION: Hello Martin … I follow emerging markets closely and one thing I note is that the size of the sovereign forex-denominated debt burdens are quite small relative to GDP except in the case of Argentina (48%). …
Do you believe that emerging markets will be in BETTER or WORSE shape by 2019? Emerging markets are getting destroyed right now. All through 2018, we have watched several emerging market currencies declining and the contagion is spreading.
What do you think will happen to Italy? Bailout? Or they’ll recover? Emerging markets are looking very weak right now and cannot reverse this any time soon. But what is not ever understood or anticipated is the counterparty risk. …
by Lance Roberts I have been, and remain, bearish on emerging markets for three reasons: As discussed yesterday, the U.S. is closer to the next economic downturn than not. When the U.S. enters a recession, emerging markets are hurt considerably more given …
by Michael Snyder After a little bit of a lull, the international currency crisis is back with a vengeance. Currencies are collapsing in Argentina, Brazil, India, Turkey and other emerging markets, and central banks are springing into action. It is …
https://www.youtube.com/watch?v=DGgVqvj8f2I&feature=youtu.be Many emerging market currencies are collapsing. John Rubino says these crises have the potential to spread across the globe, and could lead to the ultimate demise of the U.S. Dollar. Venezuela, Argentina, Turkey, and Pakistan all have currencies that …
China’s stock market is down over 20% GSIB banks are in a bear market Argentina and Turkey’s currencies are down 40%+ this year Venezuela is destroyed South Africa, India, and others have suffered big time against the US dollar this …
Emerging Markets – Submerge! 1. Currency Wars, 2. Trade Wars. 3. Hot Wars – Turkey's Lira in Free Fall, Venezuela – Hyperinflation: A Roll of Toilet Paper 3 Million Bolivars. Argentina Bankrupt Again. Mexican Peso, & Brazilian Real Collapsing! China's …
by John Rubino To understand why Europe is watching Turkey’s financial crisis with alarm, you just have to see this chart: Spanish – and to a lesser extent French and Italian – banks have lent a lot of money to …
by John Rubino Seems like every few days a new developing country discovers that it can’t pay back the dollars and/or euros it borrowed back when “external foreign currency debt” seemed like a good thing. Next up: Tunisia, apparently. From …
via qz: First Argentina. Now Turkey. The next country to face a financial crisis could be any one of a slew of emerging-market economies that have grown dangerously dependent on borrowing in dollars and other foreign currencies. As of the end of …
From Brandon Smith The trade war is a rather strange and bewildering affair if you do not understand the underlying goal behind it. If you think that the goal is to balance the trade deficit and provide a more amicable deal …
via confoundedinterest: Are emerging markets really SUBmerging markets? The emerging markets/G7 FX volatility ratio just hits highest level since 2008 and the global financial crisis. Time for Central Banks like the ECB to flex their monetary muscles!
via CNBC Oil been getting crushed this month and a top technician warns the decline is signaling even more trouble for energy stocks. Crude has been on a tear for the better part of the year, jumping more than 36 …
Country Weight Return Contribution China 30.27 -8.28 -2.55 South Korea 14.05 -1.72 -0.24 Taiwan 11.85 -1.69 -0.2 India 9.05 1.65 0.14 Brazil 6.39 -8.52 -0.54 South Africa 6.37 -12.85 -0.83 Russia 3.42 -7.8 -0.27 Mexico 3.13 -4.16 -0.13 Malaysia 2.43 …
via MS Developed-market assets, including US stocks and credit, are not immune to the conditions that have dragged down emerging markets this year, according to fixed-income strategists at Morgan Stanley. They flagged slower global growth, higher oil prices, and trade …
by Brian Maher of Daily Reckoning The Dow Jones was up nearly 400 points today, led by blue chips Walmart and Boeing. Walmart soared after posting its best sales in over a decade. Boeing jumped on hopeful reports that U.S.-Chinese trade …
by John Rubino Emerging market currencies are collapsing pretty much everywhere these days. But it’s safe to assume that most people don’t understand exactly what’s causing this outbreak, why it’s happening now, or what “external dollar debt” has to do …
by Nomi Prins via Daily Reckoning Global debt has ballooned since the financial crisis as central banks have distorted markets and fueled debt bubbles in particular. A lot of the increase in global debt has come from emerging market (EM) economies, especially China. …
The list of (emerging) stock markets that are down 15% or more (measured in #USD) has become pretty impressive. pic.twitter.com/wtCRau5PDP — jeroen blokland (@jsblokland) August 16, 2018 The Emerging Market Sudden Stop: 1. Build massive fiscal and trade domestic imbalances …
by John Coumarianos Domestic stocks outperformed international stocks for a long time. On a year-to-date basis, the S&P 500 Index was up more than 6% through July, while the MSCI EAFE Index was down slightly and the MSCI EM Index …
via Kevin Muir Wild day in the markets. Emerging markets are getting crushed like a 1980s teenage nerd asking the head cheerleader to prom. As I write this, the EEM ETF is down roughly 3% on the day, and down more …
Do you think it’s wise to hold onto exclusively FANG+ stocks at this point? Investors around the world are looking for increased corporate profits, better returns, and lower risk. But unless you’ve been living under a rock, you have …
Wolf Richter wolfstreet.com, www.amazon.com/author/wolfrichter A vicious cycle, kicked off by cheap debt that’s suddenly not cheap, after 8 years of experimental monetary policies. The dollar has risen nearly 2% since Thursday last week. Since April 17, when this move started, …
How much of an impact will this have on all markets and economies? Minimal? Or significant? https://www.youtube.com/watch?v=a01GGa5tXDc Emerging markets are looking weak. When we look at what has happened in Turkey, if we zoom out, we can see the bigger …
by Michael Snyder We haven’t seen emerging market currencies crash like this in over a decade, and analysts are warning that if this continues we could witness a devastating global debt crisis. Over the past decade, there has been an …
via Keiser Report In this Summer Solution episode of the Keiser Report, Max and Stacy contrast the situation with China, a perhaps emerging superpower, to the United States, a possibly declining superpower. As the US grew powerful as an empire …