Thursday, March 27, 2008
As Iceland goes, so go the Baltics, the Balkans, Hungary, Turkey, and perhaps South Africa
"There's now a risk of psychological contagion from Iceland. People are starting to look more closely at all these countries. The deficits were easy to fund in times of abundant liquidity, but we think the global credit crunch is going to make it a lot harder," he said. "The history of financial crises suggests that it can be dangerous to think 'it's different this time'."