[lbo-talk] Hedge Fund/Bankrupt nations question

Doug Henwood dhenwood at panix.com
Fri May 4 18:54:38 PDT 2007

On May 4, 2007, at 9:46 PM, Auguste Blanqui wrote:

> In Harvey's Late Imperialism, the other DH writes: "... just as the
> hedge
> funds, armed with trillions of dollars of leveraged money, could force
> Indonesia and even Korea into bankruptcy, no matter what the
> strength of
> their underlying economies."
> How might this occur?

By pumping a lot of money into Korean or Indonesian assets for a long while, feeding a domestic credit boom, and then suddenly pulling out. It probably wouldn't be hedge funds alone, but also other institutional investors.

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