Live Blog March 7: House Hearing on CEO Pay and Subprime Mortgage Crisis
Submitted by dennis on Fri, 2008-03-07 15:40.
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US subprime loan crisis
The US subprime loan crisis may bring about a liquidity squeeze in the region, causing credit crunches and reversal in capital flows, particular short-term portfolio flows. All this could put Asia’s financial system under stress. Thus, volatility in capital flows can pose difficulties for macroeconomic management.