(Bloomberg, NY.)
Emerging nations, including El Salvador, Ghana, Egypt, Kenya, Tunisia and Pakistan, will be challenged with a historic cascade of defaults as a quarter-trillion-dollar pile of distressed debts exerts downward pressure on economies, Bloomberg is reporting.
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“With the low-income countries, debt risks and debt crises are not hypothetical,” the World Bank’s Chief Economist Carmen Reinhart told the agency on Saturday. [I]“We’re pretty much already there.”Another cause for major concern reportedly arises from a potential “domino effect” that commonly occurs when scared investors begin yanking money out of countries with economic problems.
In June, traders reportedly pulled $4 billion out of emerging-market bonds and stocks, marking a fourth straight month of outflows.
Probable defaults may be followed by political instability. Earlier this year, Sri Lanka was the first nation to stop paying its foreign bondholders, burdened by unwieldy food and fuel costs that fueled protests and political chaos.
“Populations suffering from high food prices and shortages of supplies can be a tinderbox for political instability,” Barclays has said, as quoted by Bloomberg[/I]
Over the past six months, there’s reportedly been a doubling in the number of emerging markets with sovereign debt that trades at highly distressed levels, meaning yields that indicate investors believe default is a real possibility.
It will be a blessing in disguise. What was stolen from us we will reclaim it. Hao looters and grabber mali yao tutanyakua yote. It will wealth transfer.
When economy collapse their hopes for betterment dwindle. Pia hao wanaingia kwa streets. I have an uncle alivutwa kazi time ya covid. Jamaa was accountant. Those 3 years hadi mjengo amefanya alishe watoi. Even though he is living in his house. Ame hawk hadi steel wire amezururisha watoi wakule. Saa hii amefika mwisho. He has a car in parking hadi insurance iliisha.
Boss kwa hizi kesi si saa zote inakuwanga IT GETS WORSE BEFORE IT GETS BETTER…kuna weza haribika na kuharibike milele.
Dealing with situations ya zimbabwe ni new territory…a different ball game where you bake your cake as you eat it…yaani unalearn on the job despite your phd laden advisory board…nani akona practical experience dealing with such in an ever dynamic socio economic environment and geo political environment in the hands of poor conflicting leadership.
Msicheze wadau.
Uhuruto couldnt steer a fairly functioning economy…do they or does any of the current crop of leaders have the marbles to pull a country out of the economic doldrums when none of them has a strategic root and branch plan to slay corruption?..i doubt it.
LEO CHURCH NIMESKIA A NUMBER OF PRAYERS WATU WAKIOMBA PASSPORT ZAO ZITOKE HARAKA WAENDE…ni kunoma.
This year many Kenyans were starving due to drought. Next year we will hear the same thing. So if it gets worse ianze kuguza Nairobi middleclass kutakuwa a revolution.