Now, here’s a role reversal. Stocks roared back in the last hour of trading Monday and continued their rally Tuesday — on rumors that China and perhaps also the other members of the BRICs quartet (Brazil, Russia and India) might purchase a huge quantity of troubled euro zone sovereign debt.
For anybody with the slightest sense of history, it’s hard not to smile. Back in the fall of 1998, the financial world was flailing in a funk because Russia had just defaulted on its debts. Korea, Indonesia, Thailand and other emerging Asian economies were fighting to stave off collapse.
Now we’re told the emerging countries might be preparing to bail out the likes of Greece, Portugal and Ireland — possibly Italy and Spain, too! Read