Thailand Proposes Asia Pool $350 Billion For Crisis

[bingobongo]

so much for Asia being immune.............

it is getting interesing.......tick tick tick

Thailand Proposes Asia Pool $350 Billion for Crisis

http://www.bloomberg.com/apps/news?pid=206...&refer=home

[cloudhopper]

Wonder how much of that they're thinking of needing? Interesting article on the Naked Capitalism website partially copied here:

Is Another Emerging Markets Crisis in Motion?

We mentioned earlier, focusing on a comment made in Brad Setser's post "Where is My Swap Line?" that emerging economies had not internalized the lessons of the 1997 Asian crisis as much as was widely believed. Their central banks if anything overreacted, keeping their currencies cheap against the dollar and amassing large foreign currency reserves so that they would not be in the position of needing to defend a high-flying currency and lacking the firepower.

But their banks were not so hyper-cautious. They borrowed heavily in international markets, and the recent rise in the dollar, combined with high cost and scarcity of dollar funding, is squeezing them badly. As Setser noted then:

Analysts said emerging market currencies were being hit as foreign investors pulled money out of developing regions, driven by liquidity pressures from the credit crisis. “There seems little now that the authorities can do to reverse the process of deleveraging that is taking place with financial institutions all contracting their balance sheets at the same time,” said Derek Halpenny, at Bank of Tokyo-Mitsubishi. /snip

I should note that Thailand is not mentioned in this article as one of the vulnerable countries. Don't know if it will ever happen because the trouble with these cartels comes when they have to decide which company in which country to help out with their not unlimited (unlike the $) funds...

[LaoPo]

Such a plan/pool will not work.

Bringing $ 350 Billion in a joint pot by the 10 Asean members PLUS China, Japan and South Korea ?.....

That'll be the day, apart from the fact that such an amount is peanuts in comparison to the real economies of the 13 countries -from very rich to extremely poor- and the around 2 Billion+ people we're talking about here.

LaoPo

[lannarebirth]

You could build quite a few casinos with 350 billion dollars.

[VegasVic]

You could build quite a few casinos with 350 billion dollars.

If they did that I might reconsider buying that vacation home in Thailand

[bingobongo]

was LOS even at the table? LOS wanted $350 billion and $80 billion is agreed upon......

East Asia nations set timeline on $80B crisis fund

http://www.marketwatch.com/news/story/east...;siteid=yahoomy

Edited October 25, 2008 by bingobongo