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jdog2050
Joined: 17 Dec 2006
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 Posted: Mon Dec 10, 2007 10:03 pm Post subject: Sub Prime loan scandal and Korea |
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Someone posted that they were concerned that SK was heading for another IMF crisis...
While I would have liked to have seen more sources from that other guy's post, I did think that he was on to something.
Since we aren't back home, I don't think a lot of us here realized how f'ed up the Prime Loan scandal (and it's a scandal) is back in America. It's Enron times 20, and this time, instead of one state, it's the country, and instead of one corporation...it's ALL of them.
What they were doing was this:
giving loans to people who couldn't pay them back, meanwhile, they were selling the interest on the loans to other countries in the form of bonds. However, a lot of the countries buying these bonds didn't understand, fully, what it was that they were buying and why these loans were made in the first place. The loans were sold to them as being given to credible sources who could pay them back, when in reality, the loans and mortgages were given to people who were damned near homeless at ridiculously high interest rates. Thus, the housing bubble, bound to burst once the interest rates set in.
One of the main buyers of these loans was...dun dun dunnn, South Korea.
http://www.globalization101.org/index.php?file=news1&id=87
Also, this should show you how out of touch the Korean government is with the situation:
"Local financial firms have a combined $850 million subprime-related exposure and most of their investment is related to higher-rated securities."
Ha!!! They are either hiding or don't realize that this Sub-prime issue is a *scandal*; there's no such thing as a "higher rated" security with this because they were virtually all frauds.
http://www.kdi.re.kr/kdi_eng/highlights/govern_view.jsp?no=1806&page=21&rowcnt=10
Now, you add to this the slow down in demand for exports, and the problem just builds and builds.
Hopefully, the saving grace of this situation is that so many other countries bought into these, that the damage will be spread evenly. |
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RACETRAITOR
Joined: 24 Oct 2005
Location: Seoul, South Korea
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| Posted: Mon Dec 10, 2007 10:19 pm Post subject: |
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| Proooime lewwwn? |
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The_Eyeball_Kid
Joined: 20 Jun 2007
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| Posted: Mon Dec 10, 2007 11:00 pm Post subject: Re: Sub Prime loan scandal and Korea |
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| jdog2050 wrote: |
Someone posted that they were concerned that SK was heading for another IMF crisis...
While I would have liked to have seen more sources from that other guy's post, I did think that he was on to something.
Since we aren't back home, I don't think a lot of us here realized how f'ed up the Prime Loan scandal (and it's a scandal) is back in America. It's Enron times 20, and this time, instead of one state, it's the country, and instead of one corporation...it's ALL of them.
What they were doing was this:
giving loans to people who couldn't pay them back, meanwhile, they were selling the interest on the loans to other countries in the form of bonds. However, a lot of the countries buying these bonds didn't understand, fully, what it was that they were buying and why these loans were made in the first place. The loans were sold to them as being given to credible sources who could pay them back, when in reality, the loans and mortgages were given to people who were damned near homeless at ridiculously high interest rates. Thus, the housing bubble, bound to burst once the interest rates set in.
One of the main buyers of these loans was...dun dun dunnn, South Korea.
http://www.globalization101.org/index.php?file=news1&id=87
Also, this should show you how out of touch the Korean government is with the situation:
"Local financial firms have a combined $850 million subprime-related exposure and most of their investment is related to higher-rated securities."
Ha!!! They are either hiding or don't realize that this Sub-prime issue is a *scandal*; there's no such thing as a "higher rated" security with this because they were virtually all frauds.
http://www.kdi.re.kr/kdi_eng/highlights/govern_view.jsp?no=1806&page=21&rowcnt=10
Now, you add to this the slow down in demand for exports, and the problem just builds and builds.
Hopefully, the saving grace of this situation is that so many other countries bought into these, that the damage will be spread evenly. |
Can you explain this part a bit more slowly, please? |
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Wangja
Joined: 17 May 2004
Location: Seoul, Yongsan
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| Posted: Mon Dec 10, 2007 11:16 pm Post subject: Re: Sub Prime loan scandal and Korea |
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| jdog2050 wrote: |
Someone posted that they were concerned that SK was heading for another IMF crisis...
While I would have liked to have seen more sources from that other guy's post, I did think that he was on to something.
Since we aren't back home, I don't think a lot of us here realized how f'ed up the Prime Loan scandal (and it's a scandal) is back in America. It's Enron times 20, and this time, instead of one state, it's the country, and instead of one corporation...it's ALL of them.
What they were doing was this:
giving loans to people who couldn't pay them back, meanwhile, they were selling the interest on the loans to other countries in the form of bonds. However, a lot of the countries buying these bonds didn't understand, fully, what it was that they were buying and why these loans were made in the first place. The loans were sold to them as being given to credible sources who could pay them back, when in reality, the loans and mortgages were given to people who were damned near homeless at ridiculously high interest rates. Thus, the housing bubble, bound to burst once the interest rates set in.
One of the main buyers of these loans was...dun dun dunnn, South Korea.
http://www.globalization101.org/index.php?file=news1&id=87
Also, this should show you how out of touch the Korean government is with the situation:
"Local financial firms have a combined $850 million subprime-related exposure and most of their investment is related to higher-rated securities."
Ha!!! They are either hiding or don't realize that this Sub-prime issue is a *scandal*; there's no such thing as a "higher rated" security with this because they were virtually all frauds.
http://www.kdi.re.kr/kdi_eng/highlights/govern_view.jsp?no=1806&page=21&rowcnt=10
Now, you add to this the slow down in demand for exports, and the problem just builds and builds.
Hopefully, the saving grace of this situation is that so many other countries bought into these, that the damage will be spread evenly. |
I don't see Korea on the first link and the second link is nearly 4 months old.
Got anything recent? |
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jdog2050
Joined: 17 Dec 2006
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| Posted: Tue Dec 11, 2007 3:14 am Post subject: Re: Sub Prime loan scandal and Korea |
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| Wangja wrote: |
| jdog2050 wrote: |
Someone posted that they were concerned that SK was heading for another IMF crisis...
While I would have liked to have seen more sources from that other guy's post, I did think that he was on to something.
Since we aren't back home, I don't think a lot of us here realized how f'ed up the Prime Loan scandal (and it's a scandal) is back in America. It's Enron times 20, and this time, instead of one state, it's the country, and instead of one corporation...it's ALL of them.
What they were doing was this:
giving loans to people who couldn't pay them back, meanwhile, they were selling the interest on the loans to other countries in the form of bonds. However, a lot of the countries buying these bonds didn't understand, fully, what it was that they were buying and why these loans were made in the first place. The loans were sold to them as being given to credible sources who could pay them back, when in reality, the loans and mortgages were given to people who were damned near homeless at ridiculously high interest rates. Thus, the housing bubble, bound to burst once the interest rates set in.
One of the main buyers of these loans was...dun dun dunnn, South Korea.
http://www.globalization101.org/index.php?file=news1&id=87
Also, this should show you how out of touch the Korean government is with the situation:
"Local financial firms have a combined $850 million subprime-related exposure and most of their investment is related to higher-rated securities."
Ha!!! They are either hiding or don't realize that this Sub-prime issue is a *scandal*; there's no such thing as a "higher rated" security with this because they were virtually all frauds.
http://www.kdi.re.kr/kdi_eng/highlights/govern_view.jsp?no=1806&page=21&rowcnt=10
Now, you add to this the slow down in demand for exports, and the problem just builds and builds.
Hopefully, the saving grace of this situation is that so many other countries bought into these, that the damage will be spread evenly. |
I don't see Korea on the first link and the second link is nearly 4 months old.
Got anything recent? |
It's hard to find news outside America about the Sub Prime loan dealings because everyone's trying to pretend that they're not involved. Basically, Korea has about $850 million dollars worth of mortgage receipts that they bought, and don't know if they'll be worth anything in a few months because they were given to people who shouldn't have been given loans in the first place. This is still playing out. Wait for it. |
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Wangja
Joined: 17 May 2004
Location: Seoul, Yongsan
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| Posted: Tue Dec 11, 2007 3:17 am Post subject: Re: Sub Prime loan scandal and Korea |
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| jdog2050 wrote: |
| Wangja wrote: |
| jdog2050 wrote: |
Someone posted that they were concerned that SK was heading for another IMF crisis...
While I would have liked to have seen more sources from that other guy's post, I did think that he was on to something.
Since we aren't back home, I don't think a lot of us here realized how f'ed up the Prime Loan scandal (and it's a scandal) is back in America. It's Enron times 20, and this time, instead of one state, it's the country, and instead of one corporation...it's ALL of them.
What they were doing was this:
giving loans to people who couldn't pay them back, meanwhile, they were selling the interest on the loans to other countries in the form of bonds. However, a lot of the countries buying these bonds didn't understand, fully, what it was that they were buying and why these loans were made in the first place. The loans were sold to them as being given to credible sources who could pay them back, when in reality, the loans and mortgages were given to people who were damned near homeless at ridiculously high interest rates. Thus, the housing bubble, bound to burst once the interest rates set in.
One of the main buyers of these loans was...dun dun dunnn, South Korea.
http://www.globalization101.org/index.php?file=news1&id=87
Also, this should show you how out of touch the Korean government is with the situation:
"Local financial firms have a combined $850 million subprime-related exposure and most of their investment is related to higher-rated securities."
Ha!!! They are either hiding or don't realize that this Sub-prime issue is a *scandal*; there's no such thing as a "higher rated" security with this because they were virtually all frauds.
http://www.kdi.re.kr/kdi_eng/highlights/govern_view.jsp?no=1806&page=21&rowcnt=10
Now, you add to this the slow down in demand for exports, and the problem just builds and builds.
Hopefully, the saving grace of this situation is that so many other countries bought into these, that the damage will be spread evenly. |
I don't see Korea on the first link and the second link is nearly 4 months old.
Got anything recent? |
It's hard to find news outside America about the Sub Prime loan dealings because everyone's trying to pretend that they're not involved. Basically, Korea has about $850 million dollars worth of mortgage receipts that they bought, and don't know if they'll be worth anything in a few months because they were given to people who shouldn't have been given loans in the first place. This is still playing out. Wait for it. |
Yes, I know it has a way to run, but I see nowt about Korea in the first link and the second one is old. Since then, Citiibank have all but failed and there has been a run on a UK bank. |
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jdog2050
Joined: 17 Dec 2006
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