[ CHAPTER 10 ]
Don’t Cry for Them, Argentina
REST EASY, because Argentine-type bubbles are not about to materialize elsewhere. Markets have a marvelous capacity to self-correct, and Argentina’s default chastened international investors and lenders so severely that they have demonstrated a new level of sobriety in their approach to emerging-market countries. This caution on the part of global-market players should reassure the world that there is no longer much reason to worry about global markets pumping up the economies of developing nations to the point of intemperance.
Unfortunately, the preceding paragraph is a laughable fantasy. By late 2003, investors’ eagerness to roll the dice in emerging markets was reaching levels not seen since the ...