http://www.nakedcapitalism.com/2008/10/emerging-markets-capital-flight.html Hedge funds unwinding and why..... Regulations regarding size might be just around the corner.... Man....what a bird´s eye view.... Wow...must be difficult to make projections when one can see all the major positions..... No wonder MS and GS have such geniuses...... Brazil down 60%.....and Ireland down 73%......
Emerging markets were extremely overvalued, PEs of 50 were common. During bubbles, everything goes, but when bubbles burst, they fall real hard. Besides many Emerging Countries economies were entirely dependant on commodity prices.