What Does EM Really Stand For?

Tyler Durden's picture

Emerging Market... or Extremely Manic?

The world's investors appear to have entirely lost all sense of rational-thinking when it comes to 'risk' and 'reward'...


With expectations for Emerging Market debt-to-GDP (already at record highs) set to increase further over the next few years (no matter how much growthiness one prices in), Emerging Market sovereign credit risk has collapsed to its lowest since 2012.

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ebworthen's picture

It stands for "Ponzi", just like the U.S. Casino.

Simply another version of "666".

BorisTheBlade's picture

What proportion of that cumulative debt is denominated in a currency other than the 'sovereign' one? Answer to that question may have something to with why investors underpricing sovereign risk. Ot it's something else, like the case of everyone simultaneously going MAD and treating sovereigns as a safe heaven, or maybe it's the case of China reallocating its holdings from the USTs into other debt (they were divesting last I recall) - these guys could swing their big hammer to the extent of skewing debt markets, could they?

Ghordius's picture

alternative explanation: EM stands for completely saturated with fresh USD-denominated credit, courtesy of US megabanks,  the newly re-unshackled beasts that are worrying the dollar might be too strong, now, and create soonish a new wave of EM defaults, as we witnessed with South America and East Asia not that long ago

Yen Cross's picture

  Long euro> Girl I'm leavng you    

    Girl, I'm loving euro

Ghordius's picture

you mean you have a passing fancy for a "good cross", don't you? ;-)

(not that I can claim I will ever understand FX traders)

Yen Cross's picture

 Being long $usd is nota good angle.

   I saved the 106  E/U  handle. I fire weapons and love CRF's

Dien Bien Poo's picture

Democraphic growth. Middle class attainment. Consumption.  Resource location. You have to do EM to get EM.

jamesmmu's picture

It looks like a pretty good oppportunity to short, but I'm almost out of cash and stocks still not start going down. I'm very worried if I can stay in the game for longer.

new game's picture

all you are seeing is fundamental keynsian economics in play. moar debt to fuel growth that will be repaid with future tax receipts.

how is it working? very, very good for the .1 percent of one percent.

next question....

Last of the Middle Class's picture

They're gonna need your cash. They have no hope of ever paying this type of money back without taxing everything that walks, talks, fucks, or quacks. Barter society here we come.

JailBanksters's picture

Emerging Market = Countries Wall St has NOT stolen from yet

Extremely Manic = Countries Wall St has sucessfully pillaged, and seeking to be saved by Wall St.


pocomotion's picture

Too bad, as I was hoping to invest in Emerging Marckets for a few years(until the Trump -'Buy American; Make America Employed Again'  kicks in, say 2019-2021 ).

DontFollowMyAdviceImaDummy's picture

EM stands for Evaporating Money

Spungo's picture

Extended Mpenis

I can't think of a word that means penis but starts with M

dlfield's picture

EMP -- There...all better.