Saturday, October 25, 2008

Currency Crisis

GLOBAL ECONOMY
‘A Full-Blown Crisis’


Emerging markets were supposed to save the world with their fiscal responsibility. So much for that.
By Stefan Theil | NEWSWEEK


Last week seemed to be the nail in the coffin of "decoupling," a theory that said increasingly savvy and solvent emerging markets would no longer march in economic tandem with more-developed nations. As the global financial crisis deepened, South Korea announced a $130 billion bailout for credit-starved banks and companies, Ukraine canceled elections amid a growing national crisis over frozen credit markets and a plummeting currency, and Pakistan asked the International Monetary Fund to arrange emergency financing amid the country's worsening economic meltdown. All this came after a torrent of ratings and outlook downgrades by agencies like Fitch and Moody's on former shooting stars such as India, Vietnam, Hungary and Argentina.


What happened? Only a few months ago...


To read the full story please follow this link:


Courtesy: Online Currency Exchange | newsweek.com/id/165771/page/2


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