Asian stocks and currencies join sell-off after Bernanke comments
Financial Times, June 20th, 2013
http://www.ft.com/cms/s/0/d2139184-d950-11e2-84fa-00144feab7de.html?ftcamp=published_links%2Frss%2Fmarkets%2Ffeed%2F%2Fproduct#axzz2Wj8CcxZz
Summary
The decision of Ben Bernanke seems to have great impact on the world economy. His remark of pushing for the selling of U.S. bonds led out significant reduction in most of Asian stock market. Bernanke's plan for halting purchase of U.S. bonds seems to last till next year or till a year after, when the U.S. unemployment rate finally goes down, and the multiplier effect of pulling out money in the U.S. seems to be quite great to Asian economy that just went through great upheaval due to Abenomics. Analysts say that Fed's decision may be detrimental to globally emerging market, especially developing countries, and many countries seem to bear more pain until bond selling ends.
My Thoughts
Even though America is facing significant economic stagnation, giving additional harm to Asian market was not a desirable action. Recently, some Asian economic powers, including China, Korea, and Taiwan, got a serious economic impact due to Abenomics, and this happening forced these countries to reduce interest rate. Just the moment after these countries seemed to resolve the problem, U.S. is giving another economic threat to Asia again. Though it is unavoidable choice for the U.S., I hope the U.S. to consider the following effect of its decision on other country and alleviate negative impacts.
I hope US will consider the effect of its decision on other country and resolve this problem quick as possible.
ReplyDeleteRecently Asian countries are suffering from economic problem. I hope U.S would be aware of the situations and find the solution that would solve the problems happening in Asian economy.
ReplyDeleteMost Asian countries and the United States should cooperate each other to revive their economic crisis...
ReplyDeleteSince the U.S. has a great power over the world economy, Bernanke's plan would influence lots of countries. I hope they will not make a selfish decision.
ReplyDeleteThe United States, as a superpower in the world's economy, should be more responsible for their actions. They should be supporting other nations, not ruining their economy.
ReplyDelete