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

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		Home Tech Finance Markets Politics Strategy Entertainment Advertising Retail Sports Life Monday, July 22, 2013 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: TECH STOCKS FALL: Here's What You Need To Know Michigan Judge Says Detroit Bankruptcy Is Unconstitutional, Demands Filing Be Withdrawn Advertisement CHART OF THE DAY: China's GDP Numbers Look Almost Too 'Smooth' To Be True CHART OF THE DAY: The Chinese Premier's 2 Favorite Economic Indicators Look Super Depressing CHART OF THE DAY: Here's What It Looks Like When The Bond Market Goes Into A Coma Share this: Facebook Twitter Digg Reddit StumbleUpon LinkedIn 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

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