Korea is the next?

Korea is the next?
Oct 8, 2008 02:41
FRANKENSTEIN Points: Join Date: Nov 29, 2004 Status: offline	Source: FT. First, US put public funds in its banking systems. Then, Belgium and Germany both invested a large amount of public funds to their banking systems too. Last week, Iceland and Ireland do the same thing too. There seems a certain law---all public funds go to the banking systems in broadly alphabetical order. Who will be the next? According to te law, it is Korea. Actually, Korea already has some problems. Won fell 5 percent against dollar and Short term funding rates jumped to a seven and a half year high. "Companies, banks and households are horribly over-leveraged: private sector debt as a percentage of GDP stands at 180 per cent, above the US." Sounds horrible, right? It seems that "the law" really works.

Oct 8, 2008 02:41

FRANKENSTEIN
Points:
Join Date: Nov 29, 2004
Status: offline

Source: FT.

First, US put public funds in its banking systems. Then, Belgium and Germany both invested a large amount of public funds to their banking systems too. Last week, Iceland and Ireland do the same thing too. There seems a certain law---all public funds go to the banking systems in broadly alphabetical order.

Who will be the next? According to te law, it is Korea. Actually, Korea already has some problems. Won fell 5 percent against dollar and Short term funding rates jumped to a seven and a half year high.

"Companies, banks and households are horribly over-leveraged: private sector debt as a percentage of GDP stands at 180 per cent, above the US."

Sounds horrible, right? It seems that "the law" really works.

Oct 8, 2008 18:46	#1
GUEST18186	Handsome panda, nice journal but lacks persuasion. Thank you for your info.

Oct 8, 2008 21:54

FRANKENSTEIN
Points:
Join Date: Nov 29, 2004
Status: Offline

GUEST18186, I just offered the info here. As for the "law", it sometimes doesn't work.

According to the news, Iceland will ask help from Russia to survive the fnancial crisis. Iceland has said that it will borrow 4 billion Euros from Russia. Very rare! Usually, those western countries who have economic problems will directly ask help from IMF. However, Iceland didn't do this. Meantime, UK has planed to launch 400 billion pounds to save some big financial institutions and avert a severe economic slowdown. UK is said to follow US's steps to nationalize some biggest banks. Seems that the financial crisis won't end very soon.

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