Gold: The Lost Decade! | Mean Reversion Trading Weekly Podcast: July 17, 2022

• For Latin America, the 1980s were a “Lost Decade.” Many Latin American countries failed to make the payments on their foreign debt.

• In the 1970s, oil spiked to record highs twice, which led to many Latin American countries experiencing current account deficits.

• Banks began to stop foreign lending as they tried to collect on their existing loans. The sudden cut-off of lending sent many Latin American economies into deep recessions.

• Despite evidence of the problem, most involved did not recognize the problem until it had become a crisis.