Tag Archives: Commodity Price Bust

In the early days of open global capital markets, capital was attracted from the developed economies to the low-wage emerging markets with the promise of building a manufacturing base to export to the developed world. This capital surge was short-lived as capital plunged in at a faster rate than the new facilities could be up and flow revenues. It all came to a screeching halt when capital sought to repatriate. This was knowns as Asian Contagion. The year was 1997. The recent commodity, currency and stock market plunge are all related and known as Asian Contagion II, with the differences only in the details. Continue reading →