Monday, February 28, 2011

Thursday, February 24, 2011

Tuesday, February 22, 2011

Korean Bank Run Spreading: Eighth Bank Closes Following "Massive Withdrawals"


The quietest bank run that has so far completely evaded mainstream attention, that of Korea, is spreading, and an eighth bank has now shuttered after "Domin Bank, a savings bank with a capital adequacy ratio below 5 percent, voluntarily decided yesterday to suspend its operations temporarily because of massive withdrawals." As JoongAng reports: "The decision took both depositors and financial regulators by surprise since it was the first time that a local bank shut its doors on its own." Apparently the courageous decision by the Financial Services Chairman Kim Seok-dong to deposit $17,864 in a troubled bank has not done much if anything to prevent the locals from realizing that their banking system is built on a house of cards.

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Monday, February 21, 2011

Jim Rogers Holding more Dollar



I think because the correlation show when Stock market down and USD index goes up.

Major Inversion In GBP-JPY Correlation

After trading in nearly perfect unison and with an R2 of about 0.8 for over half a year, in the last week the speculative pattern in the GBP-JPY correlation had a dramatic breakdown. Whether this is due to expectations that the BOE will have to hike rates to deal with 4% inflation, or continuing massive quant deleveraging behind the scenes of residual positions as traditional factors now blow up daily in the faces of quants, is unclear. What is clear is that suddenly one of the more long-lived spec FX correlations has whipsawed to the point where it has left many FX traders nursing critical wounds.


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Tuesday, February 15, 2011