Monday, January 28, 2008
What's Bothering Asia?
In hearing that Asia's stock markets fell Monday morning, I wondered, "what's bothering them? Is it fear that Helicopter Ben (HB) won't cut rates another 50 basis points at the next Fed meeting? Or what? What happened over the weekend to bother Asia"? No new news about HB. Why the big drops? My answer: South Carolina (SC)! What? The Asian markets are bothered that Barack Obama got 55% of the SC vote, now has a serious chance of becoming American president and enacting protectionist legislation opposed to Asia's interests, like 1930's Smoot-Hawley tarriff. Or at least that's what I think is happening.