IMF dosen't forget Emerging Markets

Emerging markets are victims of this crisis not of their making and beyond their control, investors are selling emerging-market stocks, bonds and currencies as the rout that began with the collapse of U.S. subprime mortgages last year pushes the world toward a recession and lowers the price of commodities that sustain developing economies.

The emerging countries with the biggest falls are the economies that were most connected to developed nations. Hungary, Poland and other eastern European countries will be hit most severely.So where is the IMF - the one played an important role in the ’98 Asian financial crisis?

Actually the demand for the fund's emergency loans had dried up over the past five years as developing nations boomed – but now is soaring. Hungary, Ukraine, Belarus, Iceland and Pakistan have all announced this month that they are seeking financial support from the IMF, and the IMF is considering loans of up to five times the quota contributions of member nations, in an unprecedented effort to avert an economic collapse in emerging markets.

Emerging market central banks have been left out of agreements between the U.S. Federal Reserve and its European and Japanese counterparts to provide unlimited funds of dollars to stabilize money markets. What a BAD story!