by Calculated Risk on 11/21/2007 03:43:00 PM

From Ambrose Evans-Pritchard at the Telegraph: Credit "heart attack" engulfs China and Korea (hat tip James)

The global credit crisis has hit Asia with a vengeance for the first time, triggering a massive flight to safety as investors across the region pull out of risky assets.

Yields on three-month deposits in China and Korea have plummeted to near 1pc in a spectacular fall over recent days, caused by panic withdrawls from money market funds and credit derivatives.

"This is a severe warning sign," said Hans Redeker, currency chief at BNP Paribas. "Asia ignored the credit crunch in August but now we're seeing the poison beginning to paralyse the whole global economy," he said.

A credit crunch in Europe, Asia and America. Is "decoupling" going the way of "containment"?