This is leverage at work… but in reverse… great on the way up but it will bite you in the ass on the way down. Excerpt: ” Stephen Jen, currency chief at Morgan Stanley, said Eastern Europe has borrowed $1.7 trillion abroad, much on short-term maturities. It must repay – or roll over – $400bn this year, equal to a third of the region’s GDP” And this in essence is the problem. At a time when the sovereign debt of Germany has been downgraded, what hope do Hungary, Ukraine or Latvia have to get any financing?

Forbes on Ukraine


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: