Re: Why has the free market left South Americans poor

On 11 Dec 2005 20:44:09 -0800, "Brablo" <gestureofrespect@xxxxxxxxx>
wrote:

>This is very interesting, and I'm quite intrigued now.
>
>My question to you is: How does borrowing tremendous sums from foreign
>countries equate to currency crises?

The money can't be repaid. It's gone, with nothing to show for it.
Even the interest often can't be paid.

>Also, does the fact that the money is denominated in foreign currency
>part of the reason why their home currency almost always is in a
>crises?

Yes.

>What are their alternatives for receiving capital using leverage?

Borrow in their own currency or not at all.

-- Roy L
.

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