'Circle of Pain' Snags Emerging Markets, Too

Another mortgage-backed securities market gets into trouble

(NEWSER) - Just as the economy starts to recover, a second mortgage disaster may be looming. The commercial real estate sector is tanking, with many properties unable to generate enough cash to make mortgage payments. Lo and behold, those commercial mortgages have been sewn into securities—comparable to the packages of home mortgages that set of the financial crisis last year—in a $700 billion market where delinquency rates are skyrocketing. More»

After a season of defensive investing, money flows to developing economies

(NEWSER) - The economic slump may not be over, but investors are piling on risk in emerging markets, driving up stocks in developing nations as they seek the large rebounds that will accompany a global turnaround, the Wall Street Journal reports. The week ending May 6 saw some $4 billion flow to emerging market funds. Brazil’s Bovespa index is up 75% over its October doldrums while overall emerging markets are up 50% since March. More»

(NEWSER) - As Wall Street banks collapse like a house of cards, American capitalism isn’t just failing in practice; the very idea of unregulated, free-functioning markets has received a serious blow, writes Anthony Faiola in the Washington Post. Once the symbols of American economic might, there's a real possibility that many US banks may find themselves partially government-owned as part of the bailout, altering America’s influence in pushing laissez-faire policies in controlled economies worldwide. More»

The Acropolis, the temple of Delphi, and Parthenon going for $2,070 a day

(NEWSER) - Debt-stricken Greece is taking an unprecedented step and exploiting its own magnificent history to raise cash and help its crippled economy. The Guardian reports that Greece is offering up its architectural masterpieces, including the Acropolis, the temple of Delphi, and the Parthenon, as backdrops for movies, commercials, and photo shoots—for $2,070 a day. The culture minister promises to be selective, but the plan is still controversial as the sites are considered sacred cultural landmarks. More»

Letting its banks perish worked out for island nation

(NEWSER) - Don't look now, but Iceland's economy is growing. Tourism is up, the standard of living remains high, and unemployment is down to 7%. "For a country whose entire financial system collapsed, Iceland is doing remarkably well," the IMF's mission chief there tells the Washington Post . Why? In part because Iceland charted a unique course through the financial crisis: It let its big banks default and its currency collapse, and poured money into its economy and social safety net, raising taxes on the wealthy to do so. More»