It would appear unfortunate that the Federal Reserve announced its intent to “taper” just at the time important problems in key developing economies started to surface/gather momentum.
An indeterminate in impact, but clearly evident, crisis in the Chinese shadow banking system with considerable opacity over wealth management products (higher yielding short term deposit based investments in long term volatile assets/loans) and uncertainty over the impact of this credit crunch on economic activity, mass demonstrations and economic uncertainty in Brazil, disruptions and the same in Turkey and, of course, what is the matter with India(?).
These issues widen the potential price readjustment process, but significantly widen the downside risk in the event of a shock to growth.
About those mid-tier Weapons of Mass Ponzi in China (FT Alphaville)
India’s Ponzi-styled economic reforms run out of steam (East Asia Forum)
What’s The Matter With India? (Business Insider)