Currency Crisis soon or now?

After the thaw of credit crunch, are we heading to a currency crisis soon, or now?

Thanks to Alan Greenspan who confessed he made mistakes. That sends a powerful chill down the spine everywhere.

The Asian stock markets reacted very nervously to the Greenspan's admission. The Tokyo Nikkei Index drops by 9.6% to7,649.

The Hang Seng Index sunk by 1,142 point to 12,618, a hefty drop of more than 8% in a single day, representing 60.5% fall from its previous peak of 31,958 on Oct 30, 2007.

This fall is close to the last record held in 1998 following the Asia's financial crisis. The Index reached 16,820 on August 7, 1997 and sunk to 6,545 on August 13, 1998, a 61.1 drop in about a year.

Does the market hits the bottom? Maybe not yet.

If Greenspan is right, this is going to be worse than 1929 crash. We can expect more bad news.

Sit tight....