Ukraine, other small nations face crisis alone

[danfinance2008]

http://news.yahoo.com/s/ap/20081014/ap_on_re_eu/eu_meltdown_small_nations_struggle

just thought some would like to read

 

[wirenut]

Going to see a lot countries getting in some real trouble. Iceland, pakistan are bankrupt already. I believe it was the IMF stated a few days ago that there's three countries that are current insolvent. This is going to have a devastating effect on the rest of the world if this continues.

 

[smsnead2]

http://news.yahoo.com/s/ap/20081014/ap_on_re_eu/eu_meltdown_small_nations_struggle

just thought some would like to read

Thanks Dan. Interesting read that leaves me with a few questions.

Faced with global economic uncertainty, depositors in Ukraine began frantically converting their local currency into dollars after the hryvna (pronounced HRIV-nyah') dipped by almost 20 percent, before clawing back some lost ground.

I'm surprised by the seeming rush to the US Dollar that is occurring. Wasn't it Schiff's assertion that when this bubble started to burst that there would be a run AWAY from the US Dollar?

Analysts said the fall was due to investors pulling money out of Ukraine and many other emerging markets. The rate plunge stripped the banking system of $1.3 billion in the first two weeks of October.

This is interesting. I've wondered if it was time to reallocate some of my 401k into emerging markets. Sort of a sell 'low', buy 'lower' strategy? Or will these emerging markets continue to struggle if investors keep going back to the US dollar for some reason? And will that last? All of this is so confusing. Is it possible that the US dollar and economy will fare better than Schiff's expectations because of the gravitation towards the US dollar by foreign investors?

 

[Malakai]

Going to see a lot countries getting in some real trouble. Iceland, pakistan are bankrupt already. I believe it was the IMF stated a few days ago that there's three countries that are current insolvent. This is going to have a devastating effect on the rest of the world if this continues.

We aren't solvent either. Our balance sheet is in the red every year.

We just enjoy being able to print gold. We would be in the poor house too if we couldn't.

Poor iceland, trying to get 5.5bn from russia. We borrowed and printed up like 100 times that in a month.