The world is not ready for another financial crisis, but another financial crisis may be ready for the world. The history of modern financial crises is that, originating in obscure corners of the financial system, they are initially ignored because they seem innocuous — and then wham! The crucial question is whether all this is just an Argentina problem — or a harbinger of a broader financial crackup. For the past two years or so, international investors have poured money into “emerging market” countries, such as Argentina, Brazil, Mexico, India, China and Indonesia. We may or may not be on the edge of another financial crisis, but regardless of what you think, there’s plenty of room for self-doubt.

Source: Washington Post May 13, 2018 23:03 UTC