Deleveraging

Just received new word at the office recently, called "deleveraging". What the hell is that??? Its an unwinding position for asset managers, hedge funds, investors, and convert it into safe haven currency. Before crisis, investors tend to borrow and invest the money in the emerging market (similar to carry trade) --> called leveraging. And when the crisis hits, investors liquidate their investments and convert the money to USD. That is what happen recently, and cause Rupiah to fall off the cliff. Fortunately, the election has gone positive, and investors see Indonesia as the alternative investment point as Thailand is currently in deep trouble. Rupiah today touch 10900, much lower than last month's of 12000.