Korean Job Discussion Forums

[Soccerstar]

I've said this before, and I'll say it again.
It would be awesome to hear ttompatz on the midnight runner. I can't think of anyone else who would have more to share.
Tom, please take one day out of your schedule for that if you can.

[jdog2050]

[tzechuk]

I am sorry to hear you leave, Ttompatz.

Enjoyed your posts and glad to have met you in person, however briefly.

All the best for your retirement. Your daughter is a lucky little girl with a full time daddy!!!

Come back here (Dave's) and visit us from time to time, though.

[crusher_of_heads]

[DCJames]

Seeya Ttompatz, I hope you enjoy your retirement.

I totally agree with your reasons for leaving.

I'm outta here myself in a few months.

[kiteflyer]

Did You Know?
"The last time the Bank of Japan's Ministry of Finance physically intervened in the market, they spent 35.2 trillion yen (US$345 billion) to force down the yen's value during 2003-2004. At the time the yen was around 118. This week the yen hit a 13-year high at 90.87 against the dollar." --from the Sovereign Society Newsletter

"The yen has reached a 13-year high this month. In just one month's time, the yen has gained 14% against the dollar, 30% against the euro, 35% against the Aussie dollar, 35% versus the pound and 43% against the Canadian dollar!

I can't remember the yen ever moving so much in under a month. One or two percent isn't uncommon and maybe even 4-5% at times, but 30-40%? That just doesn't happen.

So what can anyone do when a currency is draining corporate profits and sending ripple effects around the world?

Answer: Central banks step in so they can address the root cause of the problem. In other words, they start talking about an intervention. An intervention happens when a central bank goes into the market and buys or sells their currency to preserve that country's overall economy.

The Bank of Japan Says "Make My Day!"

Interventions are rare occurrences, but when they happen traders definitely have to pay attention.

Historically speaking, the Bank of Japan has launched more interventions than any other central bank around the world. [b]They have tons of reserves, so they have the cash readily available all the time to force the yen higher or lower.
[/b]
On Monday the 27th, the Bank of Japan (along with the rest of the G-7) expressed their displeasure with the yen's recent violent rise. They said they will be monitoring the yen's activity. This is code for "traders, quit buying the yen (in the short-term) or else."

The Bank of Japan doesn't play around either. They will usually first come out and express their displeasure with the exchange rate. But if this jawboning doesn't work, then they are always ready to enter the market and starting pitching money either for or against the yen.

The last time they did this was in March of 2004 when the USD/JPY exchange rate was at 103.42. They went into the market, unannounced, and shocked traders by selling 14.8 trillion yen (approximately US$157 billion). They also sold over 20 trillion yen back in 2003.

Don't Bother Betting Against the Central Bank - You'll Lose Every Time

You need to take note when central bankers warn you that they're "ready to act quickly" as they said yesterday. After all, who wants to be on the wrong side of that trade when they sell trillions of yen? Not me!

I'd rather be on central bankers' side than against it.

So when the G-7 gave its blessing to Japan yesterday, the G-7 guys basically said they agreed with and approved of any central bank intervention if the BoJ felt it was necessary. In other words, the BoJ now has the green light to intervene.

It's true that interventions often don't have enough punch to actually affect change. But that's definitely not the case in Japan. In fact, any analyst who says interventions NEVER work obviously has never seen the Bank of Japan in action. The BoJ actually has a good track record for moving the yen as much as they want.

In the next couple weeks, the BoJ and rest of the G-7 will have their eyes on how the yen measures up versus the dollar and the euro. Europe and the U.S. are Japan's biggest trading partners so the yen's price affects how everything is priced in these three major economies.
Moral of this Intervention Story

When currencies start to reach extreme prices, listen to what the central bankers are saying. Central bankers will tell everyone if they're going to intervene, so you need to pay attention in order to trade with the central bankers and not against them.

The last time I saw the Bank of Japan intervene, it was too late to get out if you were already holding yen. The BoJ intervened so quickly and sold so much yen at once, that traders didn't have time to sell their yen pairs.

The moral of the story: Take these central bankers seriously when they talk about intervening in their currency. These central bankers have the ammo needed to hurt your trading account if you go against them. So make sure to heed their warnings."

-by Sean Hyman, FX University Daily -- a Sovereign Society Newsletter

[Tommy]

[gmat]

[rationality]

[MrRogers]

it's not healthy mentally or physically living here - and now especially for such a low salary and sh..ty place to live - go somewhere better - anywhere

BAILING!

[MrRogers]

it seems that many are "outta here"

the money is not worth it

[beast]

Before you leave,

Can I ask you what would make you reconsider to stay here. The reason I ask is because I've been here since 1997 and I know that the economy stinks now, but it was nothing like back then. If you could be in a position to run your own school, would it change your mind?

[ovid]

i think many people aren't here for the long haul. a few months ago, moving to korea seemed ideal, but now... most people can't afford to wait for a few years for it to stabilize. there are other countries that'll offer greater pay and no one has been here long enough to be "loyal" to any foreign country.

think of it... you leave to an unknown country, leaving behind friends and family and you're y'know.. life. the money was the draw.. it's not there anymore.