From the BBC, an interview of Stephen Roach. Some of his points:
- Aisan Economies need to brace themselves for an external flood of liquidity into their markets.
- In these circumstances, capital controls are one option that must be considered.
-The US "did a lot of damage to its economy by allowing bubbles to form in both property and credit and most of all allowing those bubbles to distort nearly 80% of the economy in personal consumption and residential activity. And now we're paying a price for that, that is likely to result in very weak domestic demand for years to come..."
- America is the biggest consumer in the world. 4.5% of the world's population consumes about 10 trillion dollars... the world's biggest consumer is on ice, there is no consumer who is going to take his place...
-Asia needs to stimulate internal demand, because these export dependent economies need to find a new model.