It’s so easy to just focus on the ‘big guys’ when it comes to looking for economic weakness. We get caught up in paying so much attention to the Spain’s and Italy’s of the world that we forget the little countries can still have an impact. In my TraderPlanet article for this week I discuss Thailand’s role during the Asian currency crisis in 1997 and the possible relation to Cyprus and other small peripheral countries.
My point in bringing up the Asian crisis is that Thailand was not a powerhouse country in 1997. According to the World Bank, their GDP sat just below Iran, Peru, Tunisia, and Fiji. Back in ’97 Cyprus’ GDP was nearly eight times the size of Thailand. Many of the reports of the problems facing Cyprus are discarded due to the lack of size and power that comes from the small island nation.
Go read the rest: Could Cyprus Be a Black Swan Event? (TraderPlanet)
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