Emerging Markets better placed than 1998
Emerging Markets better placed than 1998. Goldman Sach's CEO, Lloyd Blankfein said emerging markets are better able to weather an investor retreat now than in 1998, when currency turmoil spread and forced international bailouts. There were a lot of things in '98 that don't exist now, those markets now have better reserves, more flexibility in exchange rates, better policy orientation, he said. Back in 1998 Central banks of those countries were very underwhelming, while governments were trying to hold currencies at untenable rates he said. What happened in 1998 wasn't the end of the world and those countries have been doing very well for the last 10 to 12 years, It's going to be like three steps forward, one step back, he said. Money was flowing very freely, in some cases, maybe freer than it should have, into emerging markets and that's going to have to consolidate.