Home > Asia-Pacific, Economics > Asia Has Nothing to Fear Except Monsters

Asia Has Nothing to Fear Except Monsters

Alan Boyd writes in Asia Times:

Asia has limited exposure to the US subprime loans fallout, so we can all take a ringside seat while Europe and North America sort through the debris. Right? Wrong.

It’s true that the tsunami rippling through the lowest and riskiest level of US mortgage lending has no direct bearing on this region. Asian stocks have been oversold in the equities fallout and logically their markets should by now have become safe havens for nervous investors.

But crises have a way of breeding paranoia and sapping consumer confidence long after the initial bruising has subsided, even when most stockholders are mere spectators in a drama being played out on distant shores.

Asian banks are more equipped than most to handle credit strains, having spent heavily on improved risk-management and regulatory systems after the 1997-98 East Asian economic meltdown. There is even a culture of corporate governance sprouting in boardrooms.

Read the complete text >>

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Categories: Asia-Pacific, Economics
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