Comments on: HSBC Focus On Emerging Markets Has Risks http://householdwatch.com/wp/2007/07/31/hsbc-focus-on-emerging-markets-has-risks News Release - HSBC news, articles, and editorials Wed, 03 Dec 2008 20:40:17 +0000 http://wordpress.org/?v=1.5.2 Comment on HSBC Focus On Emerging Markets Has Risks by: Research http://householdwatch.com/wp/2007/07/31/hsbc-focus-on-emerging-markets-has-risks#comment-31950 Tue, 31 Jul 2007 13:23:32 +0000 http://householdwatch.com/wp/2007/07/31/hsbc-focus-on-emerging-markets-has-risks#comment-31950 Every new loan that is larger than the last contributes to increasing over-all economic instability. The outcome of such has historically been a crash corresponding to the magnitude of this debt distortion. HSBC knew what Household International was doing, and now we see the crash. HSBC Finance has a team of 150 PhD's that knew full well the historical data. They should bear much of the responsibility for what is happening today around the world. Every new loan that is larger than the last contributes to increasing over-all economic instability. The outcome of such has historically been a crash corresponding to the magnitude of this debt distortion. HSBC knew what Household International was doing, and now we see the crash. HSBC Finance has a team of 150 PhD’s that knew full well the historical data. They should bear much of the responsibility for what is happening today around the world.

]]> Comment on HSBC Focus On Emerging Markets Has Risks by: Research http://householdwatch.com/wp/2007/07/31/hsbc-focus-on-emerging-markets-has-risks#comment-31949 Tue, 31 Jul 2007 12:58:28 +0000 http://householdwatch.com/wp/2007/07/31/hsbc-focus-on-emerging-markets-has-risks#comment-31949 For one thing, investors are getting jumpy. This means emerging markets will start to look less attractive and outflows from our debt and equity markets are likely to continue. The argument that emerging markets are a good place to hide when the first world falls apart is rubbish. As one market expert said, U.S. investors (retail investors, particularly) tend to swap between U.S. bonds and U.S. equities depending on the climate. They rarely think that climbing into far-off places in times of trouble is a good idea. Americans knew Household International was not a good idea but Bond, Aldinger, and HSBC knew best. They know now, don't they? For one thing, investors are getting jumpy. This means emerging markets will start to look less attractive and outflows from our debt and equity markets are likely to continue. The argument that emerging markets are a good place to hide when the first world falls apart is rubbish. As one market expert said, U.S. investors (retail investors, particularly) tend to swap between U.S. bonds and U.S. equities depending on the climate. They rarely think that climbing into far-off places in times of trouble is a good idea.

Americans knew Household International was not a good idea but Bond, Aldinger, and HSBC knew best. They know now, don’t they?

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