Can China save Europe?

In the late 1980s, developed nations helped bail out Latin America and other emerging markets.

The issuance of so-called Brady bonds (named for the former Reagan/Bush-era Treasury secretary) enabled Brazil and other debt-laden countries to find a way out of the fiscal abyss.

Oh, how the tables have turned.

With Europe's credit and banking crisis seeming to get worse by the day, there are now several reports that Brazil -- as well as Russia, India and China -- may look to buy up a portion of sovereign debt from troubled European nations. You could a call it a BRIC Brady bond plan for the 21st century.

"Capital is flowing from lesser developed countries to higher per capita income countries. We are not used to that," said Jeffrey Bergstrand, a professor of finance with the Mendoza College of Business at the University of Notre Dame." But it makes sense because of the dramatic shift in global wealth." 

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