From the New York Times:
With the financial crisis engulfing developing countries from Latin America to Central Europe, raising the specter of market panic and even social unrest, Western officials are weighing coordinated action to try to stabilize these economies.
The International Monetary Fund, which is in negotiations with several countries to provide emergency loans, is also working to arrange a huge credit line that would allow other countries desperate for foreign capital to borrow dollars, according to several officials.
The list of countries under threat is growing by the day, and now includes such emerging-market stalwarts as Brazil, South Africa and Turkey. They have become collateral damage in a crisis that began in the American subprime housing market.
The contagion is spreading.
And these will be the real victims.
The threat to world stability is enormous.
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Richard,
Based on a New York Times (a laughable rag) article there is rarely a need to worry. As an aside, how could this happen in Latin America? Didn’t they all give up on the dreaded “neo-liberal” Washington Consensus?
If you really want to “worry”, try out the Wall Street Journal (a true news source):
There are no safe havens from the forces battering the global economy any longer.
In rich countries and poor countries alike, markets are plunging, companies are scrambling for credit and cutting their growth plans and consumers are keeping cash in their pockets. The U.S. and some governments in Europe and Asia are spending heavily to stanch the problems in markets and Main Streets globally, but the attempts have not halted the damage.
Now that is cause for alarm, from a respectable newpaper.