Skip to comments.Fed freaks out Korean markets
Posted on 06/20/2013 7:59:35 PM PDT by TexGrill
Fear of an end to the U.S. Federal Reserves quantitative easing program rattled markets across the globe yesterday, and Seoul was no exception.
The Korean won weakened to its lowest level against the dollar in almost 11 months to close at 1,145.7 won, down 1.32 percent. The benchmark Kospi dipped 2 percent to close at 1,850.49, its lowest closing since Aug. 3, 2012. The jarring drops came after Fed Chairman Ben S. Bernanke told reporters Wednesday that the Fed may start scaling back its quantitative easing program of $85 billion monthly bond buying later this year and end it by the middle of next year.
If the incoming data are broadly consistent with this forecast, the committee currently anticipates that it would be appropriate to moderate the monthly pace of purchases later this year, Bernanke said, referring to the Federal Open Market Committees outlook for labor-market gains, moderate economic growth and an inflation rate reaching the Feds 2 percent goal.
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Bernanke will be through with his term in Jan. 2014, and does not plan to stay. Janet Yellin will probably be appointed by Obama because she would be the first woman Fed chairman. She will probably do whatever Obama tells her to do, which will be disastrous, of course.
The cash is worthless. I guarantee Bernanke is making a killing with his little game of pump off, pump on. Somehow though, I think we’re approaching the final act. Right now, the coalition government in Greece is set to fall apart over some state-run media agency they can’t fund and a healthcare debt they have a week to pay. Worrying signs out of China too.
A plug will be pulled on someone before this year is over, and yes, it could be us.
She will most definitely do as he says. It’s his game with all of them.
It’s going to be an interesting day. The Nikkei was down almost 3% at opening, but is now down only 1% . Gold is up $2.
Weak rebound, people buying the sell-off, or the start of the meltdown? Too volatile to be sure.
The cash flow has been worthless since Bernanke started this quantitative easing madness.
I don’t care about Bernake ... I’m keeping my Tank topped off and my cans full.
Just watch the derivatives. One big bank goes down and the house of cards falls.