With these assumptions now in doubt,  BIS Review 144/2008  1  certain markets are now frozen and could take a long time to return, if they do at all. Third, in recent weeks, we have seen evidence of a "home bias" re-emerging in global financial markets as banks and investors furiously repatriate capital.
This reflects both the desire of banks to concentrate their limited resources on geographically close relationships, and the need for funds to liquidate assets in preparation for large redemptions. This development has the potential to significantly slow growth in some emerging markets. All of these risks are the consequence of relying on markets built on sand.