From next month commercial banks in Korea are issuing fixed interests rate long term deposit for laborers. Some economists say that the transition to higher rates will occur in an abrupt manner. In such a case markets react preemptively, potentially trapping some participants vulnerable to low interest rate for a manageable period to pass the risk. For the west unwinding and tightening is inevitable to fly a last blow for the emerging China. Private sector debt in China is up 160pc of GDP, and as the retrenching starts the bonds rate in China soar up to 6pc. All emerging countries that has let lip with asset bubble will be in hazard states like in mid 1990s east Asia.
Posted on: Fri, 14 Jun 2013 06:08:09 +0000
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