Advertisement

Rabu, 31 Juli 2013

CHART OF THE DAY: Asia Has A Bad Track Record Of Hot Economies That Quickly Spiral Into Financial Crisis

CHART OF THE DAY: July Has Been The Great Rotation On Steroids For Stock Market Funds

View this email online | Add newsletter@businessinsider.com to your address book
Markets Share this Email
Home Tech Finance Markets Politics Strategy Entertainment Advertising Retail Sports Life

Monday, July 22, 2013
Find Us on Facebook Follow US on Twitter
Asia Has A Bad Track Record Of Hot Economies That Quickly Spiral Into Financial Crisis

China's economy is decelerating significantly. And its financial system is leveraged more than most emerging economies.

This cocktail of risks have some experts worried that China's economy will land hard and spiral into a financial crisis.

Unfortunately, historical precedent doesn't offer much comfort.

"Sustained periods of high investment enabled Asian economies to achieve faster growth, but this has typically led to banking / foreign exchange crises," warn the economists at Deutsche Bank.  Here are two bullets from their recent "The House View" report:

  • "Japan’s growth has averaged ~1% since 1991 compared to 4.65% in the previous decade"
  • "Thailand (-10.6%) and South Korea (-5.7%) experienced sharp GDP contractions in 1998 as foreign capital dried up during Asian crisis"

"China’s near 50% investment rate is far larger than other Asian economies during their take-off periods," they add.

To be clear, a financial crisis is not Deutsche Bank's base case scenario.  But it's a scenario that's not totally unrealistic.


Read »


Also On Markets Today:
Advertisement

Chart of the day shows that china's gdp growth is unusually smooth, julye 2013

CHART OF THE DAY: China's GDP Numbers Look Almost Too 'Smooth' To Be True
china economic indicators

CHART OF THE DAY: The Chinese Premier's 2 Favorite Economic Indicators Look Super Depressing
Chart of the day shows ICAP treasury volume, july 2013

CHART OF THE DAY: Here's What It Looks Like When The Bond Market Goes Into A Coma
Share this: Facebook Facebook Twitter Twitter Digg Digg Reddit Reddit StumbleUpon StumbleUpon LinkedIn LinkedIn
Follow us on Facebook Follow us on Twitter
The email address for your subscription is: ipat39@gmail.com
Change Your Email Address | Unsubscribe | Subscribe | Subscribe to the Markets RSS Feed
Business Insider. 257 Park Avenue South, New York, NY 10010
Terms of Service | Privacy Policy


If you believe this has been sent to you in error, please safely unsubscribe.

Tidak ada komentar:

Posting Komentar