Emerging Market Mayhem: Economist Warns Of “Debacle” as Currencies, Bonds Collapse

downloadThings are getting downright scary in emerging markets. Just ask Bill Gross:

Or have a look at this week’s headlines:

– UK rate hike fears recede, emerging markets on edge
– EMERGING MARKETS-Currencies retreat on talk of a Fed rate hike
– Lost Decade in Emerging Markets: Investors Already Halfway There
– Some Greek Lessons for Emerging Markets
– Currencies in Freefall Handcuff Bankers From Chile to Colombia

And on, and on.

One particularly alarming case that we’ve been keen to document lately is that of Brazil which, you’ll recall, is “up sh*t creek without a paddle” both figuratively and literally. For one thing, as Goldman recently noted, there’s not a single period in over a decade “with a strictly-worse growth-inflation outcome than that of 2Q2015.” In other words, “since 1Q2004 there has not been a single quarter in which we had simultaneously higher inflation and lower growth than during 2Q2015.” (Read more from “Emerging Market Mayhem: Gross Warns Of “Debacle” as Currencies, Bonds Collapse” HERE)

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