"To paraphrase writer Robert Louis Stevenson, financial markets have 'a grand memory for forgetting'.
Multiple Latin debt crises and the 1997/1998 Asian emerging market crisis have been forgotten. Now, the risk of an emerging market crisis is very real.
BRICs on Credit...
Investors have been romancing emerging markets, exemplified by the dalliance with the BRIC economies (Brazil, Russia, India and China), a term coined by Goldman Sachs' Jim O'Neill in 2001.
Slowing economic growth in developed economies following the 2007/ 2008 global financial crisis resulted in a sharp slowdown in emerging economies. To restore growth, emerging markets switched to development models more reliant on credit.
Double-digit annual credit growth drove economic activity in China, Brazil, India, Turkey and many economies in Asia, Latin America and Eastern Europe."
'via Blog this'
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