Any lingering fantasy that Asia could insulate itself from the storm raging through the rest of the world was swept aside last week. Here is a quick rundown of what the peaceful, “unaffected” half of the planet looked like in the days before the biggest banking bail-out since – well, since Japan bailed out its banking system not that long ago.
Yet, the Asian fairy tale is not without a glimmer of truth. If the tide of the financial crisis has indeed turned, when the waters recede they will reveal a global landscape in which Asia, though damaged, will look more solid than the west.
There is also an irony to recent events. Asian governments, which by and large have been suspicious of some of the perceived excesses of deregulated capitalism, now preside over economies that – by some measures at least – are more free market than those in the west. It was noticeable, for example, that nominally communist China lifted a ban on short-selling just as light-touch regulators in London and New York were imposing temporary curbs.
FT.com / Comment - The truth behind the Asian fairy tale
