Sticking the knife in for real pain=> Dark clouds continue to rest over EM, we are eyeballing a 4% move here against Malaysia.
=> Almost 90% of short term debt in Malaysia is covered by FX reserves whilst two thirds come in the form of short term borrowing.
=> If the banking system continues to feel pressure via uncertainty from Chinese officials then we are going to see some real pain here.
=> The risk to our thesis is that uncertainty around EM begins to fade, a scenario we unfortunately think has passed the point of no return in the global economy.
=> Good Luck
