Eastern European rally needs to cool down

A tidal wave of hot money has been descending on markets in Russia and Eastern Europe this year. And...

A tidal wave of hot money has been descending on markets in Russia and Eastern Europe this year. And the fallout from such a rapid build-up of capital can be scary, even for the most robust economies. Investors are betting the eastern European countries that have joined the European Union will join the euro soon. Don't count on it. The International Monetary Fund said last week that Poland, the Czech Republic and Hungary had to reduce their budget deficits to prepare for Euro membership. That will depress demand and slow growth. Alternatively, they may postpone euro membership since it's ...