thoughts about emerging markets and impact of the depression on globalization.
As your neighbor's garbage bin or garden can impact your property price, impact of developed markets will impact sentiment and growth of firms in developing countries.
Some countries have strong domestic market but weak sources of capital, others have small domestic markets, but strong capital and commodities source. Hence without trade and financial inter mediation the real value capture will never happen. International financial institution recovery is must for before emerging market firms can stage a recovery.
In the early 30's, the Depression was compounded by populist protectionism. Politicians erected trade barriers in a misguided attempt to protect industry from global competition, stifling investment and economic creativity. If globalism is a victim of the credit crisis, we all lose.
Example #1 and Example #2
Oct. 10 (Bloomberg): Ukraine Debt Risk Soars By Emma O'Brien and Neil Unmack
Credit-default swaps on Ukrainian state debt jumped 523 basis points to 1,750, the biggest one-day advance, according to CMA Datavision prices in London. The cost indicates the highest risk of default among Europe's emerging markets, Bloomberg data show.
"It's a panic,'' said Dmitri Isupov, who manages $1 billion in Ukrainian assets as head of Dragon Capital in Kiev. "International investors think the place is in chaos.''
It is interesting, but as your neighbor's garbage bin or garden can impact your property price, impact of developed markets will impact sentiment and growth of firms in developing countries. Some countries have strong domestic market but weak sources of capital, others have small domestic markets, but strong capital and commodities source. Hence without trade and financial inter mediation the real value capture will never happen.
Ukraine is the only government among Europe's emerging markets with credit-default swaps trading above 1,000 basis points, a level investors charge for creditors perceived as "distressed.'' Kazakhstan is the next highest at 759 basis points, less than half the cost for Ukraine.
Contracts on Russian government debt jumped 90 basis points today to 470, the highest since at least 2004, according to CMA Datavision.
Some countries have strong domestic market but weak sources of capital, others have small domestic markets, but strong capital and commodities source. Hence without trade and financial inter mediation the real value capture will never happen. International financial institution recovery is must for before emerging market firms can stage a recovery.
In the early 30's, the Depression was compounded by populist protectionism. Politicians erected trade barriers in a misguided attempt to protect industry from global competition, stifling investment and economic creativity. If globalism is a victim of the credit crisis, we all lose.
Example #1 and Example #2
Oct. 10 (Bloomberg): Ukraine Debt Risk Soars By Emma O'Brien and Neil Unmack
Credit-default swaps on Ukrainian state debt jumped 523 basis points to 1,750, the biggest one-day advance, according to CMA Datavision prices in London. The cost indicates the highest risk of default among Europe's emerging markets, Bloomberg data show.
"It's a panic,'' said Dmitri Isupov, who manages $1 billion in Ukrainian assets as head of Dragon Capital in Kiev. "International investors think the place is in chaos.''
It is interesting, but as your neighbor's garbage bin or garden can impact your property price, impact of developed markets will impact sentiment and growth of firms in developing countries. Some countries have strong domestic market but weak sources of capital, others have small domestic markets, but strong capital and commodities source. Hence without trade and financial inter mediation the real value capture will never happen.
Ukraine is the only government among Europe's emerging markets with credit-default swaps trading above 1,000 basis points, a level investors charge for creditors perceived as "distressed.'' Kazakhstan is the next highest at 759 basis points, less than half the cost for Ukraine.
Contracts on Russian government debt jumped 90 basis points today to 470, the highest since at least 2004, according to CMA Datavision.