Friday, May 18, 2012
Article about ballooning economic & property bubbles in emerging market countries
Global investors, seeking to diversify away from the post-bubble heavily-indebted Western world, have inadvertently created a massive â€œhot-moneyâ€ bubble in emerging market nations, causing overheated economies and property bubbles everywhere from Brazil to Israel to the Philippines. Soaring asset prices and easy money is creating â€œluxury feverâ€ as emerging market nations copy the spendthrift ways that led to the Westâ€™s downfall just a few years earlier. In its essence, the emerging markets bubble is a derivative of the commodities and China bubbles and is highly vulnerable to their inevitable popping.