We fear a general emerging market crisis is becoming difficult to avoid. The coronavirus pandemic is reaching the likes of Brazil, Mexico, India, Turkey, and other big emerging markets, and there are several reasons to be very worried:
- Social distancing is near impossible for big parts of the population.
- Some countries have resisted instigating measures, preferring to salvage the economy, but this isn't likely to work.
- Many developing countries have gorged on cheap dollar credits, now that cash flows are drying up and the dollar is rising, a wave of corporate and sovereign downgrades will