New Capital Controls in Emerging Markets

Foreclosures Drop: The "Artificial" Cause is Likely the Foreclosure Moratorium(CNBC) Analysts believe banks' suspension of foreclosure activity is the reason behind the decrease in number of homes foreclosed upon in October. (Foreclosures dropped 4.39 percent in October since the prior month.) Was does that mean? We may be seeing foreclosure rates rise jump up again at the beginning of next year.


New Capital Controls in Emerging Markets (New York Times) The era of the free flow of capital, which helped to finance emerging market development, may be slowing. China, Taiwan and Brazil are imposing measures that make foreign investment in their markets less attractive. Emerging market nations have become increasingly wary of foreign investment, due to the appreciation of their currencies, which makes their products less attractive in foreign markets.

Bad Assets Go Up for Sale (New York Times Dealbook) Two years after the Washington bailed out the banks, the bad assets are finally going up for sale. “You’re going to see over the next five years, more financial asset liquidations than you’ve seen in the sum total of the last 100 years,” says Peter L. Briger Jr., co-chairman of the Fortress Investment Group.

EU Stands Ready to Backstop Irish Bonds, if Necessary (Wall Street Journal) European Commission President Jose Manuel Barroso said, "The EU is ready to support Ireland." He went on to say "We have all the necessary instruments,"— presumably in reference to the new 440 billion Euro sovereign rescue fund, though he declined to speculate on if it would be needed.

Promised US-South Korea Trade Deal Doesn't Happen (Financial Times)"The US and South Korea have failed to reach a promised agreement to finalise a high-profile bilateral trade pact, disappointing hopes that the summit of the Group of 20 richest nations in Seoul would deliver anything but a rhetorical commitment to liberalising trade." The pact was ratified but not signed in 2007 — but had been opposed by the U.S. auto industry, as well as other industry lobbying groups.

U.S. Futures Fall after Terrible Numbers from Cisco (Reuters) "U.S. stock index futures fell on Thursday after a dismal outlook from Cisco Systems, while leaders struggled to find common ground at the G20 summit amid concerns growing protectionism will hurt global trade."