I think we all are, but can they do anything about it?
IMF deputy- director Min Zhu is firmly in the camp that blames the effect of bond tapering by the US Federal Reserve for causing global liquidity to dry up.
Mr Zhu said this had combined with a slow structural crisis in a number of developing states that have already picked the low-hanging fruit of catch-up growth, warning that those that resist market reforms “will face trouble”.
Brazil’s President Dilma Rousseff sought to reassure investors that this week’s currency collapse in Argentina would not spread to the Brazilian real, insisting that all contracts would be honoured and that foreign funds would be “treated well”.
Today, the stability of our currency is a central value of our country.
The real has weakened by 20% against the dollar this year, breaking through the crucial line of 2.40 in trading yesterday.
The Telegraph has more here
Is anyone really surprised by all this and the effect of tapering after an extended period of cheap money just floooding into the stock markets?
And the Fed/others haven’t even really started” normalization” yet.
