The FT's Martin Wolf on credit and emerging markets
The US Federal Reserve's decision to tighten monetary policy looks like an important blunder, the FT's Marin Wolf writes.
He ties together the narrative of capital outflows from emerging markets and the commodity collapse to a misguided belief that the US economy will carry the weight.
"Another set of credit bubbles, that in emerging economies, is loudly popping. This is going to leave a legacy of financial shocks and, if mishandled, bad debt," he writes. "The adjustment ahead for a world economy so addicted to credit bubbles is going to be difficult. It will probably be no outright disaster. But it is not going to be much fun either."