Deja Vu For The Global Economy?
The scenario has become depressingly familiar. Emerging-market nations, their economies crippled by debt, start to spin out of control--currencies plunge, stock markets crash, foreign investors flee. That triggers sell-offs in bourses around the world and pushes up interest rates on all sorts of borrowing. Then, the International Monetary Fund and other financial institutions of the industrialized nations swing into action, stitching together loan packages and dictating reform plans to stop the panic. Investors, figuring the worst is finally over, plunge back into emerging markets--only to run into a wall of reality.
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