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>> UNITED STATES OF AMERICA Latest News

JUN 22, 2013 - Zero Hedge

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The Toxic Feedback Loop: Emerging <-> Money <-> Developed Markets

Extreme Developed Market (DM) monetary policy (read The Fed) has floated more than just US equity boats in the last few years. Foreign non-bank investors poured $1.1 trillion into Emerging Market (EM) debt between 2010 and 2012 as free money enabled massive carry trades and rehypothecation (with emerging Europe and Latam receiving the most flows and thus most vulnerable). Supply of cheap USD beget demand of EM (yieldy) debt which created a supply pull for EM corporate debt which is now causing major indigestion as the demand has almost instantly dried up due to Bernanke's promise to take the ... Read More

Tags: The Toxic Feedback Loop: Emerging <-> Money <-> Developed Markets,  United States Of America Latest News