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.