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afsjesse
Joined: 23 Sep 2007
Location: Kickin' it in 'Kato town.
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bucheon bum
Joined: 16 Jan 2003
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 Posted: Tue Feb 24, 2009 10:05 pm Post subject: Re: South Korea to inject 12 Trillion WON into Banks in Marc |
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| afsjesse wrote: |
http://www.koreatimes.co.kr/www/news/biz/2009/02/123_40221.html
Hopefully a temporary life line for the won! |
eh actually a flood of won will make it weaker, not stronger. |
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gazz
Joined: 13 Oct 2008
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| Posted: Tue Feb 24, 2009 10:08 pm Post subject: |
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I was reading in one of the Korean papers last week that come March Korea will have to pay off part/all of a loan to Japan or something like that.
I think Japan is within its rights to ask for all the money back (which is a shit load!) or just part of it. |
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ChinaBoy
Joined: 17 Feb 2007
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| Posted: Wed Feb 25, 2009 5:57 am Post subject: |
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| the banks don't need won.. Korea isn't exporting much, giving money to the banks isn't going to make exports go up |
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ryoga013
Joined: 23 Nov 2008
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| Posted: Wed Feb 25, 2009 6:12 am Post subject: |
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| ChinaBoy wrote: |
| the banks don't need won.. Korea isn't exporting much, giving money to the banks isn't going to make exports go up |
But a Korean economist said it would help, and well, who are you going to believe, every else or part of the "Nara's" ??? |
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bobbybigfoot
Joined: 05 May 2007
Location: Seoul
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| Posted: Wed Feb 25, 2009 6:53 am Post subject: Re: South Korea to inject 12 Trillion WON into Banks in Marc |
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| bucheon bum wrote: |
| afsjesse wrote: |
http://www.koreatimes.co.kr/www/news/biz/2009/02/123_40221.html
Hopefully a temporary life line for the won! |
eh actually a flood of won will make it weaker, not stronger. |
Dude, a way to simplistic statement. You clearly have not thought things through.
A healthy banking system is good for the economy. Healthy economies attract investors.
This latest move may have no effect, minimal effect or some effect. But it won't cause great movement either way. 8 Billion US sounds alot less impressive than 12 trillion won. |
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VanIslander
Joined: 18 Aug 2003
Location: Geoje, Hadong, Tongyeong,... now in a small coastal island town outside Gyeongsangnamdo!
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| Posted: Wed Feb 25, 2009 6:56 am Post subject: |
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| ryoga013 wrote: |
| ... part of the "Nara's" ??? |
 .. all I know is Chinaboy is no Kimberly.
Re-read the article rogaine13. It is not about the exchange rate. Would you wanna borrow money when the currency its in is strong or weak? Think about it.
The lack of basic knowledge among the supposedly university educated about money supply, interest rates and exchange rates is staggering.
The article is about increasing the money supply to encourage the banks to give out more loans: the extra resources lowers their capital risk (more money had, more likely to lend out), and they'll then lower interest rates to stimulate customers to take out loans. Since all this will be domestic, there's no immediate effect on imports or exports hence no direct pressure on exchange rates, but - and this is where it gets sticky cuz it depends on particular industries involved - presumably many of the businesses and individuals taking out the loans will use that korean won to buy imports, though the article speaks of banks helping out smaller firms, which suggests more service industry rather than manufacturing, or at least, more small scale biz for local sales. If the money was going to the chaebols and other export-oriented medium to large scale businesses, then the net effect would be an increase in exports (presuming companies lower prices to stimulate sales abroad) and hence more foreign demand for Korean won to buy the products, strengthening the local currency and making it more attractive for ESL teachers to convert their local currency into a foreign one (notably the U.S. dollar, as a major trading partner).
(This is not rocket science. And no, my degree was not in economics, it was in philosophy: maybe that's why it all seems so logical to me.) |
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bucheon bum
Joined: 16 Jan 2003
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| Posted: Wed Feb 25, 2009 1:10 pm Post subject: Re: South Korea to inject 12 Trillion WON into Banks in Marc |
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| bobbybigfoot wrote: |
| bucheon bum wrote: |
| afsjesse wrote: |
http://www.koreatimes.co.kr/www/news/biz/2009/02/123_40221.html
Hopefully a temporary life line for the won! |
eh actually a flood of won will make it weaker, not stronger. |
Dude, a way to simplistic statement. You clearly have not thought things through.
A healthy banking system is good for the economy. Healthy economies attract investors.
This latest move may have no effect, minimal effect or some effect. But it won't cause great movement either way. 8 Billion US sounds alot less impressive than 12 trillion won. |
Sure it is "simplistic" since it is macroecon 101.
Of course I thought things through. I figured the dude is probably on a one-year contract and was hoping for a turnaround w/in that year. Now if he was talking beyond a year, then yes, it could be good news. Otherwise, all this news means is a weaker won in the near future. |
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justaguy
Joined: 01 Jan 2008
Location: seoul
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| Posted: Wed Feb 25, 2009 2:17 pm Post subject: |
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| 12 trillion won. Considering that the largest note here is the 10000 won bill, it must have taken them a year to print up that much cash. |
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sobriquet
Joined: 16 Feb 2007
Location: Nakatomi Plaza
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| Posted: Wed Feb 25, 2009 2:40 pm Post subject: |
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| gazz wrote: |
I was reading in one of the Korean papers last week that come March Korea will have to pay off part/all of a loan to Japan or something like that.
I think Japan is within its rights to ask for all the money back (which is a shit load!) or just part of it. |
Japan won't renew the loan like they normally do. |
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hogwonguy1979
Joined: 22 Dec 2003
Location: the racoon den
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| Posted: Wed Feb 25, 2009 9:56 pm Post subject: |
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sounds exactly like whats going on the us. federal govt injecting cash into the banks to get them to sure up balance sheets and get them loan to which likely wont work. and of course the govt isnt getting a stake in these banks either
can you say KARP???? I knew you could
to me it sounds really fishy |
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Pwillig
Joined: 26 Jan 2009
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Milwaukiedave
Joined: 02 Oct 2004
Location: Goseong
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| Posted: Wed Feb 25, 2009 11:11 pm Post subject: |
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from the thread about the new English Village, since I have the same opinion....
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| Giant waste of money |
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ryoga013
Joined: 23 Nov 2008
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| Posted: Thu Feb 26, 2009 12:27 am Post subject: |
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| VanIslander wrote: |
| ryoga013 wrote: |
| ... part of the "Nara's" ??? |
.. all I know is Chinaboy is no Kimberly.
Re-read the article rogaine13. It is not about the exchange rate. Would you wanna borrow money when the currency its in is strong or weak? Think about it. |
It was sarcasm... and the "nara" is from "uri-nara." |
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