Salient to Investors:
Paul Krugman said weak emerging markets are the downside of the mad rush by investors for return in an economic environment that was very poor due to weak economic performance in developed markets.
When the amount people want to save exceeds the volume of investments worth making you have two outcomes. Either, cautious and prudent investors trying to spend less than their income, causing a persistent slump, or what we have now, flailing investors, desperate for yield, pouring money into ill-conceived projects.
The world economy will seesaw between bubbles and depression.
Read the full article at http://www.businessinsider.com/paul-krugman-on-em-2014-2
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