Don’t Blame the Fed for Asia’s Problems – Bloomberg 08-26-13

Salient to Investors: William Pesek writes: Another 1997-like Asian crisis is highly unlikely because exchange rates are now more flexible, foreign-currency debt is lower, banks are healthier, countries are sitting on trillions of dollars of reserves, and economies are far more transparent. The same can’t be said of 1994, when the

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Capital Flows Back to U.S. as Markets Slump Across Asia – Bloomberg 08-20-13

Salient to Investors: Asia’s role as the world’s growth engine is waning as economies across the region weaken and investors pull out billions of dollars in favor of nascent recoveries in the US and Europe. Economists forecast Malaysia will post its second straight quarter of sub-5 percent growth this week.

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Debt of One Quadrillion Yen? Not a Problem – Bloomberg 08-15-13

Salient to Investors: William Pesek writes: A week after Japan’s debt reached the 1 quadrillion yen ($10.28 trillion) mark, yields have actually declined. BOJ Governor Kuroda is winning bondland’s full obedience with two forms of trickery: essentially transferring money via monetary policy from citizens to the government, and outright monetization of public debt. The

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China’s Worst Nightmare Is Turning Japanese – Bloomberg 08-08-13

Salient to Investors: William Pesek writes: China is very susceptible to Japanization, and only bold and creative action can avoid it. However, for every pledge to cut excess production capacity, audit government borrowings and tolerate sub-8 percent growth, two others assure markets that growth won’t be allowed to slow too much. Japan

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Pesek’s View From Asia – Bloomberg 08-02-13

Salient to Investors: William Pesek writes: Former George Soros advisor Takeshi Fujimaki  said Abe delaying increasing Japan’s sales tax would worsen Japan’s debt profile, while Fed tapering would cause a fresh credit crunch that would slam Japan’s bond market. When Li Ka-Shing, Asia’s richest man, is turning to Europe as Hong Kong

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