Mexico. Brazil. Argentina. Mexico, again. Thailand. Indonesia. Argentina, again.And now, the United States.
The story has played itself out time and time again over the past 30 years. Global investors, disappointed with the returns they’re getting, search for alternatives. They think they’ve found what they’re looking for in some country or other, and money rushes in.
But eventually it becomes clear that the investment opportunity wasn’t all it seemed to be, and the money rushes out again, with nasty consequences for the former financial favorite. That’s the story of multiple financial crises in Latin America and Asia. And it’s also the story of the U.S. combined housing and credit bubble. These days, we’re playing the role usually assigned to third-world economies.
1 comment:
I have a friend who has been urging me to get into gold for a very long time. He has been saying that the dollar and the US economy generally cannot possibly sustain their current course. He also thinks the US government was behind 911, so I take what he says with a large grain of salt.
Still seems he was right on the dollar though.
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