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CREDIT MARKETS: "Emerging-Market Debt Boom Signals End of Crisis," by Riva Froymovich, Wall Street Journal, 13 October 2009.
The trigger? A strong sense of the market-expansion potential in emerging markets, as globalization continues to rumble on with little resistance.
"Clearly, the problem has gone from, 'What do I sell in order to raise the cash I need? ... to, 'Oh my gosh, where do I put the cash that's being thrown at me?'" said Michal Gavin, head of emerging-markets strategy at Barclays Capital. "The focus turns from fears of downside risk to upside potential."
So much for the end of globalization, or "deglobalization."
Last year there was an outflow of $40b from emerging markets. This year has seen a $40b inflow, erasing the now-temporary panic.
Still waiting on my 1930s global depression. Where are all my fear-mongers and freak-out artists now?
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