UBS' George Magnus believes the next global economic "crisis"' lightning rod will be the emerging markets and as Jim Rogers tells BoomBust's Erin Ade in this brief interview, "the emerging market crisis has only just begun." While Rogers is careful to add that there are lots of emerging markets - "some better than others;" he warns that "there are some serious problems out there and they are going to get worse." Who is to blame? The Fed, of course - "by driving rates so low and providing as much liquidity as anyone in the world could want, the EMs have borrowed to cover up their real problems... be worried."
90 Seconds of simple clarity
From 17:00 to 18:30
Transcript:
For Turkey, Indonesia, India, Brazil - this is not over yet - "they have serious problems and are not being resolved."
The major problem is the Federal Reserve: with interest rates at such low levels, people can borrow lots of money - and America is printing a lot of money so there's plenty to go around
A lot of countries have borrowed money at cheap rates which covers up their problems... they haven't addressed their real problems; and so now, we have a huge problem facing us and it's going to get worse.
This is not over yet - you should be worried, be careful, and be prepared
Obligatory Erin Ade collage:
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