The last article of year 2011

Dear All, This is my last article for 2011. Hope you have enjoyed my articles during the year. 2011 is a very difficult one for everyone. The first half of 2012 may be worse. There is just so many baggage from the past yet to be cleared out. The past cannot be covered up anymore.I'm in Zhejiang now, talking to bankers about unique credit risks here associated with businessmen gambling in Macau. Bankers literally try to take away their borrowers' pass for entering Macau. But, somehow, they manage to get into without the pass. This is such a big deal that threatens the health of China's economy. Macau threatens China's stability.High interest loans are a bigger destabilizing force yet. Its fall impact is yet to be felt. So many still count on land price coming back to save them. The land bubble...

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Posted in: BRIC

Shattered illusions

Andy Xie forecasts escalating volatility in the global economy next year as the West begins to pay for its past excesses and the emerging economies, led by the BRICS, try to pick up the pieces after the credit bubble bursts Andy Xie December 14, 2011 Next year may be the most volatile year in two decades. A political crisis may engulf major countries in transition. The financial crisis that began in the United States and is now raging in Europe could take down some major emerging economies that have been relatively stable. The BRIC economies may experience serious difficulties next year. Some may suffer an old-fashioned currency crisis. The major central banks in the developed economies loosened monetary and fiscal policies to cope with the financial crisis in 2008. A significant...

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Posted in: BRIC