It is still a dangerous and volatile world out there . if this simple realization is reinforced by a one or two more incidents like the ones below it could be the trigger that turns market sentiment bearish. IMHO it will be an external currency shock that puts the stock market over the edge. There seems to be no end to articles like the ones below. What I find facinating is that they are largely ignored by the mainstream media
1:
This from Korea: 07-17-97 : South, North Korean Soldiers Exchange Fire in Demilitarized Zone
By Lee Sung-yul Staff reporter
South and North Korean soldiers exchanged light artillery and rifle fire yesterday in the Demilitarized Zone after a group of armed North Korean soldiers violated the border.
No South Korean casualties were reported, but a hardened bunker in the DMZ was partially damaged in a 23-minute exchange of fire, the Joint Chiefs of Staff ( JCS ) said. It was the first time in years that North Koreans fired even mortar and anti-tank shells against South Korean soldiers at the DMZ, though they often fire rifle shots, a JCS spokesman said. ...
Defectors from the North say Pyongyang has finished preparations to invade the South.
2:
EDITORIAL, THAILAND BUSINESS DAY ( Now they tell us! ) Living on Borrowed Time, Learning From Past Mistakes
Business Day Welcomes your opinions or suggestions.
Borrowing over $80 billion from abroad over the past decade meant living precariously with other people's money and on borrowed time. Time has run out, and the whole country has been hit, not only by enormous financial losses, but also by the shame and disgrace of being a debtor desperately in need of more loans from foreigners and begging for assistance. ...
3:
This from Korea: 07-17-97 : Government Officials Strive to Prop Up Credit Standing of Korean
Firms Abroad; Following Insolvency Report of Kia
By Yoo Cheong-mo Staff reporter
With the overseas credit standing of Korean enterprises and banks declining in the wake of the insolvency of the Kia Group Tuesday, government officials are briskly moving to stem adverse ripple effects. The Ministry of Finance and Economy ( MOFE ) said yesterday that the government will be ready to mobilize the central bank's foreign-currency reserves to help ease the capital crunch at domestic financial institutions. ``Adverse publicity stemming from the Kia crisis will likely drive foreign lenders to raise rates for Korean banks and enterprises, in the name of the 'Korean premium,''' said MOFE spokesman Chung Eui-dong. ...
4:
NEWS FROM BRAZIL: Brazilian stock markets fall but Real remains stable
BRASILIA, 07/16/97 - Although the speculative attacks on Asian currency helped cause an 8.5% drop on the Sao Paulo stock exchange and a 7.7% decline in Rio de Janeiro, Finance Minister Pedro Malan maintained his schedule of visits to financial leaders the United States. He will lunch today with the vice director of the International Monetary Fund, Stanley Fisher. However, Argentine Finance Minister, Roque Fernandez, said Malan had expressed "concern" when he visited Buenos Aires Sunday. "When he was in Europe he was always being questioned on the potential impact of the Asian crisis," Fernandez said. Malan assured him, however, that there will be no abrupt changes in the exchange rate. ( SB ) ...
Electrical appliance industry records a 12.2% drop in sales
SAO PAULO, 07/16/97 - Manufacturers of electrical and electronic products recorded a 12.2% drop in sales in June, compared to the same period in 1996.
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