Thursday, 9 October 2008
A real game of RISK!
I certainly enjoyed the odd game of Risk with my brothers when growing up. We all cheated so much it was hard to tell who had really won.
However today, we have a real game Risk taking place. Economic warfare is taking place across the world and there are some major causalities.
First we have Iceland, bankrupt and cap in hand to the Russians to try and keep going. Their assets seemingly confiscated in the UK to ensure our savers don't lose.
Next we have Pakistan, the rupee humbled and again the country brought the the point of default.
Who will be next? In most emerging economies, so long thought of as the new brave world, reality is coming home to bite. China may enter into a recession, Indonesia is again in trouble, Thailand is in both a political and economic mess. Even top performer Brazil has seen huge falls in its market and credit ratings. Russia has been forced to effectively close its markets (so much for my investor acumen...) for the past few weeks and they remain shut until 10th October.
But, for the comments, who is next? Will be it an emerging economy or will be it a more established Western one?
Who can name the dominoes?