Korean Job Discussion Forums

Snowkr · Joined: 03 Jun 2005

Sorry if this topic is getting really old but I'm not on here much these days and don't have a ton of time to browse the forums...

Some of my friends and family back home (U.S.) are withdrawing ALL their money from banks because they're worried about the economy/recession/slash another situation like in the late 20's.

My question is... has anyone felt the need to do anything like that here...?
I hate jumping on the panic bandwagon but I guess you can never be too careful.

MrRogers · Joined: 29 Jun 2008

sure, it is always something to worry about with various banks going under,

however, some banks are safe, and you have the FDIC

in the small New England state I am from, the small state banks are said to be in good shape and very secure...on the other hand, it is the large interstate banks which are worrisome

the small amount I have in my domestic bank I am not worried about and leaving it there

as far as being here in Korea, my feeling is that I should (and do) take all my salary and wire it over as soon as possible after being paid...as the value here will continue to go down, and get worse! so get it out of here asap...I know others on this forum don't agree but that's how I see it

also, this is supposed to go on for about 2 years

today:
rates at 2008.09.29 09:16:17 UTC
1.00 KRW = 0.000841288 USD
South Korea Won United States Dollars
1 KRW = 0.000841288 USD 1 USD = 1,188.65 KRW

http://www.xe.com/ucc/convert.cgi

EzeWong · Joined: 26 Mar 2008 Location: Seoul

Honestly,

I'm seriously get butt mucked in all 3 dimensions and possibly the fourth... (one inside the other) because of the exchange rate.

However, panicking isn't helping anyone. Economy is highly suseptible to the emotions of the players. When people drive the economy down, it's because they are making unpredictible actions with their money. Such as INVESTING IN GOLD! (lmao sorry I had to say it). People start withdrawing from banks and start holding onto cash. Cash flow halts, etc etc... I'm sure I don't need to do a dave's forum rendition of the stock market crash of the US depression.

I'd like to think of it this way. You know that dude... like if the world was gonna end, and you have this group and you're trying to get organized to fight the aliens... theres like this 1 dude...

And he flips out, and makes everyone else antsy and he panics, and you just want to smack him? Yeah that's everyone who freaking out now.

DCJames · Joined: 27 Jul 2006

The good ole' days of Noh Moo Hyun are GONE!

Americans are now getting $0.85 for every 1,000 won we earn here.

Even with the US's economic problems, the trend is the USD getting even STRONGER than the won Mad

.

aka Dave · Joined: 02 May 2008 Location: Down by the river

The Economist had long term predictions a couple months ago that the won was a long term winner against the dollar. I realize you throw anything from a couple months ago in the garbage, but what are the long term indicators for a weak won? It seems to me the dollar has all kinds of downside built into it.

maddog · Joined: 08 Dec 2005 Location: Daegu

I'm worried about the won. It seems like every time I send money home, less arrives at the other end. I remember in 2006, I was getting about 850 pounds for 1.5M won. Now, I get about 740. Back then, I was on 2.1. Now I'm on 2.3. So basically, I'm worse off now than I was then due to inflation.

For me, it's just another nail in the coffin for Korea.

MD

Snowkr · Joined: 03 Jun 2005

thanks everyone for the quick responses!

I wouldn't be so worried about this if I didn't have financial obligations back in the states that need to be met each month.

I never thought the won would drop this much this quickly and I suppose that's what really concerns me. Still... the situation in the states is so precarious that I'm really hesitant to send any money home. I'm with Bank of America. Nothing small town about them...

Someone told me the yen is also losing value against the U.S. dollar. Has anyone else heard this? At one time, I'd actually considered investing in Japanese currency too...

mindmetoo · Joined: 02 Feb 2004

Banks in the USA are covered by the FDIC and then the government, unless you imagine the fed no longer being able to print new money. Pulling money out of banks will only worsen the problem.

If you're planning on moving home in the short term and don't like the exchange rate, then, yeah, be worried. If you can sign for another year, sign.

aka Dave · Joined: 02 May 2008 Location: Down by the river

Part of the problem is the *Koreans themselves*!

http://www.latimes.com/news/nationworld/world/la-fg-koreaecon30-2008sep30,0,624484.story

These nutty Koreans, they see our economy tanking (USA), and so all of a sudden they get nervous about the won and they buy dollars!! (they're thinking of the IMF crisis and trying to put their money in a secure place. They should be buying gold or oil - well, not oil, they want oil to go low for other reasons). Who in the freaking world would buy dollars right now! The Korean stock market stabilized, but the won tanked because Koreans are putting money into dollars. That kills the won.

Another thing is the current account deficit, which is bad mainly due to oil import prices. I think oil prices will drop for the simple reason that *no one* benefits from an American depression, least of all oil producing countries. We're their best customer. Korea will benefit from lower oil prices, and if the start having some measure of confidence in their own damn currency the won will make a comeback. Anyway, I'm sitting on my won until all this stabilizes. The situation is way too volatile.

Today was some scary, scary crap. All bets are off. Shot guns and canned food are looking more and more attractive.

mindmetoo · Joined: 02 Feb 2004

If the dollar is under valued, it's not silly to buy the dollar.