Hi Ankit! Thank you for your comments. It's very interesting that India and Malaysia have more or less stabilized after the near crisis last summer/fall. For the moment, it appears that developed markets are mopping up the capital fleeing the EM's. I think the extent of the problem could be worse. The easy money of the past 5 years has focused a good deal on EM's. If there is a significant increase in interest rates, the economies will stall. And if the economies stall, I suspect we will discover that the misallocations of capital in EM's has been very large. Where exactly they reside we won't know for some time.
Hi Ankit! Thank you for your comments. It's very interesting that India and Malaysia have more or less stabilized after the near crisis last summer/fall. For the moment, it appears that developed markets are mopping up the capital fleeing the EM's. I think the extent of the problem could be worse. The easy money of the past 5 years has focused a good deal on EM's. If there is a significant increase in interest rates, the economies will stall. And if the economies stall, I suspect we will discover that the misallocations of capital in EM's has been very large. Where exactly they reside we won't know for some time.