We’ve moved the archives to the bottom of the page but they are still here. Of course you may always access the archives by clicking on the listed categories in the left hand column of this page as well. Learn the best ways to invest money during the developing dollar crisis, possible stock market crash, and developing financial crisis. Our goal is to be the only website that consistently provides you, the reader, with the REAL stories behind the stories in the investment world today and the facts you need to know about gold investments, the oil crisis and how to recession proof your investment portfolio against coming bank failures and continuing economic mayhem.
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Most Read Posts (64 articles) - Discover which articles Underground Investor™ readers are most interested in. See the full database, including the most recent articles that may not be listed below, by clicking the link above.
Sept. 27, 2007 - 101 Reasons Why Managing Your Money is the Quickest Way to Build Wealth
Sept. 25, 2007 - 10 Surefire Ways to Make an Investment Fortune
Sept. 15, 2007 - Why the U.S. Feds 0.50% Rate Cut Won’t Save the Markets
Sept. 15, 2007 - U.S. Interest Rate Cut to Have Little Long-Term Positive Effect
Aug. 20, 2007 - How Much Does the Gov’t Really Manipulate Markets
Aug. 9, 2007 - More Gov’t Foolishness (or Lies) Again: Markets are Sound…NOT!
Aug. 9, 2007 - Chinese Tariffs and the Nuclear Option
Jul. 24, 2007 - How to Invest Like the World’s Greatest Investors
Jun. 17, 2007 - Get Out of Dollar-Denominated Bonds While You Still Can!
May 1, 2007 - Uranium Stocks are Finally Getting the Attention They Deserve
Apr. 23, 2007 - The Emperor’s New Clothes Abound in the Investment Industry. Don’t Get Cheated by Your Advisor
Apr. 20, 2007 - Use Intelligent Strategies to Push Risk Back onto Investment Firms
Apr. 19, 2007 - In Risky Markets, Follow the Behavior of the Ultra-Rich, Not the Rich
Apr. 12, 2007 - The Secret to Investing
Gold Investments (37 articles) - Use traditional rules to invest in gold stocks and you’ll lose money hand over fist with this asset class. Learn more about one of the most important components of every portfolio for future years to come. See the full database, including the most recent articles that may not be listed below, by clicking the above link.
April 23, 2008 - Will U.S. Markets Crash Now or Later?
Feb. 4, 2008 - Could Chinese New Year’s Fuel the Next Rally Higher for Gold Stocks?
Jan. 29, 2008 - Even After This Strong Run, Gold Stocks are Still a Bargain Today. Here’s Why.
Jan. 5, 2008 - A Sneak Peak at Our Premium Level Information
Nov. 4, 2007 - Is Hyperinflation Coming to the U.S.? It’s Time to Stock Up on Gold.
Nov. 4. 2007 - Gold is the Best Investment Today, History Tells Us So.
Nov. 2, 3007 - Gold Expensive at $791/oz.? Not by a Longshot
Jun. 5, 2007 - Learn How NOT to Invest in Gold
Mar. 30, 2007 - Navigate the Minefields of the Investment Information Highway
Mar. 7, 2007 - This Bounce in Gold Markets Merits a Cautious Approach
Mar. 6, 2007 - Gold Stocks Correction - What it Means?
Feb. 28, 2007 - How to Profit from a Weakening Market, Gold Stocks, & More, Part II
Feb. 28, 2007 - Buying Opportunity in Gold Stocks
Feb. 28, 2007 - How to Profit from a Weakening Market, Gold Stocks, & More, Part I
Feb. 23, 2007 - Uncover the Ignored Asset Classes
Feb. 12, 2007 - How Do I Know that Institutional Money is Still Not on Board with Gold?
Jan. 25, 2007 - If You Don’t Own Gold Stocks, You Need To
Jan. 23, 2007 - Building Wealth Requires More than Just Contrarian Investing
Jan. 14, 2007 - Use the Long Tail of Investing to Accurately Predict the Price of Gold
Jan. 11, 2007 - The REAL DEAL about Gold and Energy
Dec. 13, 2007 - Commodities and Asians: Apparently We All Look Alike
Nov. 6, 2006 - Sometimes Silence is Golden
Oct. 10, 2006 - Shock and Awe Awaits Global Markets
Oct. 4, 2006 - Is Gold’s Correction Over Yet?
Oct. 2, 2006 - Fiat Currency Concerns Give Rise to a Gold & Silver Backed Currency System
Oct. 1, 2006 - The Gold Timeline - A History of Gold Prices
Sept. 16, 2006 - Has the Commodities Bubble Burst? No, No, No!
Sept. 13, 2006 - Sell the Rumor, Buy the News
Sept. 11, 2006 - Gold’s Speculative Stigma is Unwarranted
Sept. 3, 2006 - Gold’s Glitter is Genuine
Aug. 14, 2006- Knowing Your History is More Important to Creating Wealth than Fundamental Analysis
Financial Crisis, Dollar Crisis & Recession Proof Investing (30 articles) – Foolish investors’ eyes lit up as New Century Financial dropped from $30 to $20 a share during the recent subprime mortgage fiasco. Their hearts thumped with excitement as shares dropped from $20 to $10 and they doubled down. When shares dropped to $5 they thought it had to be the bottom and put their last remaining money into New Century. A month later, they lost everything. There is similar optimism surrounding the dollar today from self-declared currency experts. Discover why the dollar is much more likely to go the way of New Century than experience a comeback like Muhammad Ali’s Rumble in the Jungle. For the most recent articles, perhaps not listed below, click the above category link.
June 26, 2008 - The One Question That Will Have the Greatest Impact on Your Financial Future
May 14, 2008 - What’s Driving the Price of Oil Higher? It’s the Dollar, Stupid!
April 30, 2008 - How Low Will the Feds Go?
April 17, 2008 - Monetary Inflation. How Increased Paper Wealth Can Translate into a Lower Standard of Living
March 3, 2008 - Why Investors Will Never Make Money in this Bear Market
Feb. 20, 2008 - The Secret to Building Wealth in Volatile Markets
Feb. 6, 2008 - Is Recession in the U.S. Coming? We’re Already in One.
Jan. 28, 2008 - The Outcome of the Fed’s Interest Rate Cuts? History is the Best Oracle.
Jan. 24, 2008 - The Fed’s 0.75% Interest Rate Cut - A Recipe for Future Disaster
Dec. 7, 2007 - The Dollar Panic. Is it Real?
Sept. 19, 2007 - Signs of a Peak Investment Crisis Keep Coming
June 18, 2007 - Alan Greenspan’s Call of Checkmate on China is Premature
June 17, 2007 - PIMCO’s Bill Gross and the Economist Agree with SmartKnowledgeU 6 Months After the Fact!
May 28, 2007 - The Politics of Higher Oil Prices
May 26, 2007 - Asian Countries Pooling Reserves to Protect Themselves from the Incredible Shrinking Dollar, Part II
May 25, 2007 - Asian Countries Pooling Reserves, Part I
May 3, 2007 - The Death of the 3-Year Treasury Note
Apr. 1, 2007 - The Next Cold War Will be an Economic One
Jan. 25, 2007 - Dollar-Denominated Bonds Faltering
Jan. 9, 2007 - Use the Longtail of Investing to Accurately Predict Dollar Behavior
Jan 7, 2007 - 10 Reasons Why Dollar-Denominate Bonds Aren’t Safe
Dec. 21, 2006 - Iran Presents More Trouble for the U.S. Dollar
Dec. 7, 2006 - The U.S. has Perfected the Incredible Shrinking Dollar
Free Stock Picks (24 articles) - While our top-shelf stock picks and ideas that have since returned 100% to 200% returns are reserved for our members only, here read articles about some mid-shelf stock picks and ideas that have already returned 30% returns in less than a year. Access the full database, including the most recent articles that may not be listed below, by clicking the topic link above.
Jun. 4, 2007 - To Prove the Effectiveness of Our SmartKnowledgeU™ Investment System, Even Our Weakest Picks that We’ve Given Away for FREE Have Soared
Apr. 29, 2007 - After BAIDU, Possibly Focus Media
Apr. 2, 2007 - Profit, Don’t Lose From Market Corrections
Apr. 2, 2007 - Global Warming Presents Easy 30% Gains for Underground Investor Readers
Mar. 13, 2007 - Beware the Perpetual Bulls, Part II
Feb. 18, 2007 - Banking Sector FY 2008 - Positive for Japan & India, Negative for China
Jan. 4, 2007 - Chinese Technology Companies to Watch in 2007
Dec. 19, 2007 - MSFT and Internet Protocol Version 6
Dec. 12, 2006 - It’s Time to Keep a Close Eye on Indian Stocks ICICI & HDFC
Dec. 7, 2006 - The Ocean Becomes a New Growth Point in the World Economy
Oct. 30, 2006 - What’s the Safest Place to Invest in the Oil Industry Now?
Oct. 30, 2006 - You’ll Find Ignored Investment Opportunities in the DRC & Libya
Oct. 23, 2006 - Indian Banks Anyone? Four Letters: HDFC
Oct. 9, 2006 - Don’t Believe the Hype - Avoid Chinese Bank Stocks
The Peak Investment Crisis & Stock Market Crash (57 articles) - Bubbling underneath the surface, there lies a peak investment crisis. When it hits, savvy investors will build a fortune. Unfortunately, most investors will be blindsided and lose great fortunes instead. Access the entire database, including the most recent articles that may not be listed below, by clicking on the above category link.
Nov. 4, 2007 - Is Hyperinflation Coming to the U.S.? It’s Time to Stock Up on Gold.
Nov. 4. 2007 - Gold is the Best Investment Today, Part II
Oct. 15, 2007 - Our New Forum on Facebook: Crisis Investing
Oct. 9, 2007 - Beware the Turbulence that Lies Beneath the Surface, Part I
Sept. 20, 2007 -The Signs of a Peak Investment Crisis Keep Coming
Sept. 19, 2007 -Why the U.S. Fed’s 0.50% Rate Cut Won’t Save the Markets
Aug. 9, 2007 - More Gov’t Foolishness Again
Jun. 29, 2007 - Don’t Let the Strength of the U.S. Markets in the First Half of 2007 Fool You
Mar. 11, 2007 - It’s the Difference Between Chasing & Building Wealth
Mar. 6, 2007 - What this Correction Means for Gold Stocks
Feb. 28, 2007 - How to Profit From a Weakening Market & Gold Stocks
Sept. 9, 2006 - The Peak Investment Crisis
Aug. 11, 2006 - How to Protect Your Portfolio During Turbulent Markets
A New Investment Paradigm for the 21st Century (11 articles) – Fundamental and Value investing may take years of patience to pay off (i.e. Apple Computers was a huge value stock at $13 a share and took more than four years of waiting to pay off huge), Growth investing often leads to chasing hot sectors that correct rapidly. Discover why changing conditions in today’s global market has created a new investment paradigm that is hands down the best way to invest today. Click the link above to see all articles, including the most recent articles that may not be listed below, in this category.
Jul. 24, 2007 - How to Invest Like the World’s Greatest Investors
Feb. 25, 2007 - Frontrunning Can Make You a Fortune
Jan. 30, 2007 - The New Paradigm of Successful Investment Strategies
Jan. 21, 2007 - 10 Reasons the Longtail of Investing is the Only Way to Build Wealth
Jan. 16, 2007 - Use the Longtail of Investing to Predict Major Market Events with High Accuracy
Jan. 9, 2007 - Accurately Predict U.S. Dollar Behavior
Sept. 1, 2006 - What Mark Cuban Failed to Realize About Investing
The Biggest Investment Myths (62 articles) – All investment professionals, from investment firms to financial consultants to the financial journal purposely spread tales of lies and deception. Jim Cramer, an investment professional that amassed a fortune as a hedge fund manager, recently stated that the last thing he ever wanted to do is to tell the truth. Find out why deception is part of the game in the investment industry. Click the category link above to access the full database, including the most recent articles that may not be listed below.
Oct. 25, 2007 - New Home Sales Went Up. So What?
Oct. 15, 2007 - Beware the Turbulence that Lies Beneath the Surface, II
May 6, 2007 - Economic Reports Drive Short-Term Behavior, but Hardly Represent the Truth
Mar. 21, 2007 - The Short-Term May be Rosy, but Beware the Financial Crisis that is Building Steam
Mar. 4, 2007 - Foreign Markets aren’t as Risky as the Pundits Say
Feb. 23, 3007 - Evolve Your Investment Strategies with Evolving Technology
Feb. 6, 2007 - My Problem with Investment Newsletters (except ours, of course!)
Feb. 4, 2007 - 10 Questions to Help You Find a Superior Financial Consultant
Jan. 30, 2007 - A New Paradigm of Successful Investment Strategies
Jan. 25, 2007 - Despite Evidence to the Contrary, Millions of Investors Will Believe Whatever they Want to Believe
Jan. 7, 2007 - 10 Reasons Why Dollar Denominated Bonds Aren’t as Safe as You Think
Jan. 5, 2007 - How Understanding MMA Champions will Make You a Better Investor
Dec. 18, 2006 - The True Determinants of Wealth Have Nothing to do with Asset Allocation
Nov. 12, 2006 - The Greatest Investment Myth Exposed: Why Modern Portfolio Theory WILL NEVER Make You Rich.
Wealth Literacy (88 articles) – Wealth Literacy is the new Financial Literacy. Financial Literacy may teach you to be fiscally responsible but you can still be financially literate and remain poor. Wealth Literacy fills in all the holes of Financial Literacy and teaches you how to build wealth today. Click the category link above to see new articles that may not be listed below.
Oct. 15, 2007 - Our New Facebook Investment Group - Crisis Investing
Oct. 9, 2007 - Beware the Turbulence that Lies Beneath the Surface, I
Apr. 23, 2007 - Beware the Emperor’s New Clothes -Don’t Get Cheated by Your Adviser
Apr. 20, 2007 - Intelligent Investment Strategies Push Risk Off of You & Back onto Investment Firms
Apr. 19, 2007 - In Risky Markets, Follow the Behavior of the Ultra-Rich, Not the Rich
Apr. 17, 2007 - Why Wealth Literacy is More Important than Financial Literacy, Part II
Apr. 15, 2007 - Why Wealth Literacy is More Important than Financial Literacy, Part I
Apr. 13, 2007 - Pop Investing is All the Rage, but it’s a Loser’s Game
Apr. 12, 2007 - The Secret to Investing in 3 Easy Rules
Apr. 10, 2007 - Build Wealth by Answering These 5 Questions
Mar. 30, 2007 - How to Navigate the Minefields of the Investment Information Highway
Mar. 12, 2007 - The Short-Term May be Rosy, But Beware the Financial Crisis that is Building Steam
Mar. 11, 2007 - The Difference Between Chasing Wealth and Building Wealth
Feb 23, 2007 - Uncover the Ignored Asset Classes
Feb. 21, 2007 - Why Traditional Education Stifles Your Ability to Build Wealth
Feb. 15, 2007 - 7 Habits of Highly Effective Investors
Feb. 8, 2007 - 10 Reasons Why a Professional Athlete’s Best Friend Needs to be his Financial Adviser
Politics and Stocks (30 articles) - Think you don’t need to understand politics to be a good investor? Think again. If you don’t understand politics, you’ll never fully understand the most likely future direction of global stock markets, oil, gold, and currency markets. Click the above category link to see the full database of articles, including the most recent articles that may not be listed below.
Apr. 11, 2007 - Building Great Wealth in Stocks Requires Understanding Politics
Apr. 1, 2007 - The Next Cold War will be an Economic One
Apr. 1, 2007 - Possible U.S. Military Intervention in Iran
Mar. 13, 2007 - To Err on the Subject of Chinese Tariffs May Expedite a Shakespearean Tragedy
Dec. 17, 2007 - Do Free Markets and Free Trade Exist?
Oil Crisis (15 articles) – Think oil prices are controlled by supply and demand, futures traders, or Peak Oil Theory? Think again. Discover the true determinants of oil price behavior, primarily dollar devaluation. Click the above category link to see the full database of articles, including the most recent articles that may not be listed below.
May 14, 2009 - What’s Driving the Price of Oil Higher? It’s the Dollar, Stupid!
May 28, 2007 - The Politics of Higher Oil Prices
Nov. 26, 2006 - Does the end of Mid-Term Elections Mean Higher Gas Prices Again?
Nov. 8, 2006 - The Peak Oil Theory was Created by - You Guessed it - Big Oil!
Oct. 30, 2006 - The Safest Place to Invest in the Oil Industry Now? - Oil Refiners, Pipeline Manufacturers, Deep Sea Platform & Drilling Manufacturers, and 4D Imaging Companies
Oct. 30, 2006 - You’ll Find Ignored Investment Opportunities in the DRC and Libya
Oct. 12, 2006 - How Has Prince Bandar bin Sultan Affected Oil Prices in Years Past?
Uranium Investments (3 articles)– The bulk of this information is contained within our members only area, but you’ll find an article or two here. Click the above category link to see the full database of articles, including the most recent articles that may not be listed below.
May 1, 2007 - Uranium Stocks are Finally Getting Some Attention. Better Late than Never.
May 1, 2007 - What Does Uranium Futures Mean for the Future of Uranium Stocks?
Africa Investments (5 articles) - For the more daring investor willing to place small bets for HUGE returns, Africa awaits.
Canada Investments (4 articles) – Articles about Canada and the Canadian stock market and hands down some of the best opportunities in ANY global stock market.
China Investments (21 articles) – Articles about Chinese stocks and the Chinese stock market.
India Investments (4 articles) – Articles about Indian stocks and the Indian stock market.
Japan Investments (4 articles) - Articles about the Japanese economy and stock market.
Russia Investments (1 articles) - Articles about the Russian economy and stock market
U.S. Stocks (25 articles) - Articles about U.S. stocks and the American stock market.
Vietnam Investments (3 article) - Articles about Vietnam and the explosive yet unregulated Vietnamese market.
Investment Psychology (22 articles) – One of the most important but yet most overlooked and ignored aspects of investing is psychology. Discover how an improper mindset can be the difference between huge losses and huge gains in your portfolio. Click the above category link to see the full database of articles, including the most recent articles that may not be listed below.
Feb. 7, 2007 - Investors Should Apply the Rule of Shopping 101 to Buying Stocks
Jan. 3, 2007 - Will the 2006 Year End Rally Continue into 2007?
Dec. 21, 2006 - Perception Can Overrule Reality in Driving Behavior but Reality Will Overrule Perceptions in Driving Outcome
Nov. 30, 2006 - The Recency Effect Hurts Investment Decisions
Nov. 2, 2006- Canadian PM Stephen Harper & Hungarian PM Ferenc Gyurcsany - the More Things Change the More They Stay the Same
Nov. 2, 2006 - Irrational, Not Rational, Behavior Often Drives Markets
Oct. 24, 2006 - The Financial Media are Like Bad Weatherman
Oct. 8, 2006 - The SmartKnowledgeU Reader’s List
Oct. 4, 2006 - Hungarian PM Ferenc Gyurcsany: We LIED Morning, Noon, & Night!
Sept. 26, 2007 - Move Over Harry Potter! The Deceptive Wizardry of Fund Managers
Sept. 17, 2006 - When it Comes to Investing, You Get What You Pay For
Sept. 16, 2006 - Why Do People Believe One of the Dumbest, Most Flawed & Deceptive Measures of Economic Conditions?
Sept. 13, 2006 - Why Book Smarts Won’t Help You Build Wealth
Sept. 10, 2006 - Investment Psychology 101
Aug. 24, 2006 - To Become Wealthy, Abandon Widespread Beliefs About Investing
Aug. 18, 2006 - Following Mainstream Media Will Lead You Down a Disastrous Investment Road
Aug. 3, 2006 - Following Short-Term Fluctuations Will Create Poor Investment Decisions
Options Investing (10 articles) - We don’t discuss options much here but occasionally, if there is a compelling play, we’ll write an article or two.
Water Investing (1 article) - Read articles about investing in water as a commodity as the world’s fresh water supply becomes more scarce.
The Zen of Investing (42 posts) - Read articles from our resident martial arts expert regarding how understanding principles of martial arts can make you a much better investor. A combination of “The Art of War” and “The Art of Investing” if you will. Click the above category link to see the full database of articles, including the most recent articles that may not be listed below.
Technorati Tags: investment blog, investment strategies, dollar crisis, financial crisis, oil crisis, stock market crash, howto invest gold, recession proof, best ways to invest, Wall Street bailout
August 1st, 2008
April 23, 2008
Every time I’ve written about the imminent disaster that awaits U.S. stock markets, and subsequently global markets, the response has been overwhelmingly negative. In 2007, when I warned of steep declines in U.S. markets that were on the way in 2008, I was called everything from unpatriotic, to un-American, to even unholy. When steep declines indeed hit the markets to begin 2008 and gold soared to $850, (fulfilling my September 2007 prediction of $850 gold by January 1, 2008), the name-callers merely disappeared. It’s not that I revel in markets struggling and the still very real possibility of it shedding great value. In fact, I’d be ecstatic if the U.S. markets looked healthy and an imminent rise to a 16,000 Dow was realistic, with an upward surge taking all global markets along for the ride. Good money can be made in great markets or terrible markets so it doesn’t really matter either way. It’s amazing that people think I have an agenda for wanting markets to crash, oddly connecting my market sentiments to arguments about patriotism or religion. It’s just that I feel obliged to report what I see, because so few nuggets of reality trickle through the mainstream information filters and reach larger audiences.
People seem to forget one central and critical point. Most people seem to believe that they have to lose a great deal of money when crises materialize and forget that it is absolutely possible to prosper during crises as well. Thus, because they feel they must suffer during a crisis, the “shoot the messenger of bad news” syndrome commences. That said, I’m still going to state my utter lack of faith in this mini-rally that the U.S. markets are currently experiencing. Due to the huge levels of unaddressed and unsolved risk that still simmers quite potently beneath the surface, with the current “solutions” being implemented today, I honestly can only see two outcomes. Crash now or crash later.
Should an extended rally of the Dow above 13,000 occur, it will serve no purpose other than to create the illusion of wealth, as opposed to the creation of real tangible wealth. The higher U.S. markets rise in today’s environment, the more likely it is that they will fall even harder in the future. Here’s why.
Read more …
April 23rd, 2008
February 4, 2008
Last week, I wrote an article called “Even After a Strong Run, Gold Stocks Still a Bargain.” In that article, I wrote that gold stocks, both the majors and especially the junior resource stocks, were highly undervalued given historical ratios of gold stocks to the price of their underlying commodity. In fact, as of last week, I wrote that many majors were trading at the same share prices they were at when gold was only $830 an ounce. So I concluded that either the price of gold was going to have to come way down or the shares were going to have to go way up. I concluded that the shares would have to go way up, and I’m still concluding that, but with a slight modification.
Technically, gold futures contracts are showing a bearish rising wedge pattern so there is the imminent risk of a minor correction now. I say minor and not major, because I just can’t see gold retreating all the way back to $800 an ounce. I just think that such a significant retreat, given the vast problems in the global economy, and particularly in the U.S., has a very small probability. My downside projections for a correction are somewhere within the $850-$860 range if we see a correction, but should gold retreat to this range, I believe that this retreat will be very short lived as savvy investors will definitely view such a correction as a buying opportunity and jump into the market at this point to drive the price of gold higher again. As far as the “gold is too high” believers, even if gold doesn’t retreat by $40 or $50 an ounce, I believe that even at $900 an ounce, long term buyers of gold and those that have already been buying for years will be just fine adding to their current gold bullion positions at this price. At every step of the way during this current gold bull run, gold has been “too expensive”. It’s been “too expensive” at $400 an ounce, at $500 an ounce, at $600 an ounce, at $700 an ounce, at $800 an ounce, and now at $900 an ounce. The fact is that this gold bull run has a long long way to run. Read more …
February 4th, 2008
January 31, 2008
There are at least four economic and stock market crises that I’ve studied extensively that mirror today’s global economic conditions. Only many things today make today’s situation in many aspects much worse than the conditions that triggered past crises. That is why I say crisis is inevitable and great wealth will be destroyed in global stock markets. However, great wealth can also be built during this time as well. You don’t have to be a passive investor whose wealth will be destroyed. Here, I’ll examine just one of these crises - the 1997 Asian Financial Crisis and how the triggers for this crisis do not bode well for today’s situation.
The 1997 Asian Financial Crisis
Prior to 1997, the Asian “tigers”, in particular, South Korea, Thailand, and Indonesia attracted foreign investment in three manners: (1) The liberalization of investment policies and consequent elimination of restrictions on capital inflows; (2) the maintenance of high domestic interest rates to attract capital inflows; and (2) the pegging of domestic currencies to the U.S. dollar to allay fears of volatile currency movements.
Extremely high 8-12% GDP growth rates in South Korea, Thailand and Indonesia in the mid-1990s created rampant foreign speculation in real estate markets and created unsustainable inflated real estate prices. When the real estate bubble burst, a flight of capital ensued. As foreign currencies were withdrawn at record levels, the domestic currencies of the Asian tigers suffered great depreciation in their exchange rates against the Western denominated currencies of the investing nations. To provide stability to the economies of the Asian tigers, the IMF proposed a 3-pronged solution: (1) Cut back on government spending to reduce deficits; (2) Allow illiquid banks and financial institutions to fail, and (3) Aggressively raise interest rates to strengthen domestic currency. Read more …
January 31st, 2008
