Asian research: Worth the paper it's printed on?
It's not just Asia's leaders that are in a state of denial. So too are the legions of economists and research analysts working at investment banks and brokerages across Asia. You might have expected some would have called the crisis that has crippled the region in the past six months. But whether because of political sensitivities or the sheer lack of talent in their ranks, Asian researchers failed to spot the impending crash. Steven Irvine reports.
Global Economic Projections: Overall Rankings Asia's current economic woes have come as no surprise to Marc Faber. One of Asia's most famous bears, he has been forecasting doom for quite some time. Paul Krugman, an MIT professor of economics, is another who has long argued that the region has overstretched itself. But as Faber points out in a recent edition of his Gloom, Doom & Boom report, "when Krugman published his critical article about Asia's growth prospects, numerous articles by Asian fund managers and strategists countered that Krugman didn't know what he was talking about".
Now is Krugman's moment of vindication. People in the region had begun to argue, he says, that Asia was "not part of the same economic universe as the rest of us. Fundamentally the point is: Asia operates under the same rules."