Way back in the olden days, the late 1990s, the tiger economies of south east asia crashed, millions evaporated from share values, property prices tumbled, U.S. dollars and european currencies were at peril, in steps the IMF, spreads some cash around countries on the precipice of major default on stringent conditions of restructuring, the very banks that invested in the bubble called in their loans which were paid off with IMF funds, the banks took their money and ran, leaving the bubble countries with nowhere to turn but China and low and behold, the very banks that did a runner, poured money into a bogus U.S. property market.
Watch out all you regulators and watchdogs, the banks may have been give a 70% haircut, but with cheap ECB money floating up in the background, don't let the banks run away somewhere else and inflate another bubble, in say, other emerging markets.
Let's think about a way to develop a coherent, sustainable, global economy.
Gray Dourman
www.magichelix.com
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