'Europe's banking woes have begun to set off a funding crunch in the emerging markets of Asia, Latin America, and Eastern Europe, leaving them nakedly exposed as the rich world slides into a double-dip downturn'

from the telegraph.........

"Most developing countries lack a proper bond market so firms rely on global finance to raise capital. Almost 80pc of the money come from European banks, which have lent $3.4 trillion to emerging markets. Part of the funding comes from US money markets – which have effectively pulled the plug on Europe. This adds a nasty twist to what is already a very twisted nexus.

Data from the Bank for International Settlements show that Europe's banks have lent $1.3 trillion to Eastern Europe, $900bn to emerging Asia and almost $500bn to Latin America. The danger is a "sudden stop" in lending"................READ MORE