It seems crisis in Europe spreads East Europe including Hungary, Czech Republic. A concern that the crisis of 2008, illiquidity and export slump, could face once again become higher than before. As proofs of this prediction, Hungary currency, Forint and Czech Republic currency, Czech koruna have gone down for recent one month. Forint dropped 9 percentages, and Czech koruna fell 6 percentages as well as Poland currency in the foreign exchange market. This is because a risk of defaults on the money some West Europe Government like Greece borrowed cause credit crunch of that countries. The chief of IMF warned East Europe about credit crunch as the financial sector of West Europe recalls its money. Moreover, banks of West Europe is supposed to reduce their balance sheet due to lifting of capital ratio (5% -> 9%) I talked before that will make some bad effect to East Europe. Hungary required some help to the IMF even though it wanted FLC (forward looking criteria) as an insurance-type agreement. It is truth that it looks harsh for East Europe to go through the crisis. Hopefully, everything will be fine.

Chief of the IMF’s warning

http://www.bloomberg.com/news/2011-11-07/lagarde-says-emerging-european-mkts-may-face-liquidity-squeeze.html#

Hungary and IMF

http://www.nytimes.com/2011/11/19/business/global/hungary-turns-to-imf-for-insurance.html?scp=1&sq=hungary%20IMF&st=cse

During weekend, I read some articles about the European crisis. One of issues articles talked about is resignations of Greek and Italian prime ministers, and political and economic effects of resignations. Italian Prime minister, Silvio Berlusconi decided to resign after Parliament passes economic reform EU required to save Italy from sinking into European debt crisis. After a vote to pass the economic reform, he will finish his long and turbulent 17 years, six sex scandals and corruption, as a politian. In case of Greece, as Greece resolved its political crisis by changing its prime minister, wealthy European countries such as Germany and France have already bailed out Greece. However, in case of Italy, the third-largest economy of Eurozone, it has lots of debts around €1.9 trillion ($2.6 trillion) looked too big for Eurozone to bail out and too big to ignore at the same time. Furthermore, Italy’s bond rate became 6.77 percent that is highest level after it has used Euro currency. This is important because a rate of over 7 percent is considered unsustainable. As bond rate goes up, the burdens of its bond soar because they have to pay back its yield to lender who bought its government bonds, and it was already proved by cases of Greece, Portugal and Ireland. Anyway, because of Italian problem, it does not look easy to solve this economic turblence. I will just keep watching this situation.

First of all, I am very pleased with our project because it is pretty interesting and fun to work with people from diverse cultures, which make me understand and know well other countries and people.

Our business model is basically a delivery service for students who don’t want shop ingredients and proteins. However, as we expand our business, I think we can provide our service to busy married women who work at companies.

Our project members get their own parts to do our project efficiently. As I am majoring  in economics, I am responsible to research potential competitors and how much money we need initial investments. Also, I am supposed to sum up our members’ research results and plans and make the presentation we will use together.

RESUME

Haneul Kim

#66063, 1475 E 15th Ave.

Eugene, OR, U.S.A., 97403,

Tel. (541) 513-2741

E-mail: haneul@uoregon.edu

Education

University of Oregon, Eugene, OR, U.S.A. (Jan. 2011 – Present)

Exchange student program, Economics Major

Korea Maritime University, Busan, Korea

Bachelor of Arts, Economics Major

Expected date of graduation: Feb. 2013

Intermediate Microeconomic Theory

Intermediate Macroeconomic Theory

Volunteer Experience

Instructor, Good Neighbors (NGO), Busan, Korea (Mar. 2010 – Dec. 2010)

Educated children age 3 – 7 through puppet shows, to prevent sexual harassment and help child victims of natural disasters in developing countries

Publicity Volunteer, Beautiful store seed (NGO), Busan, Korea (Feb. 2010 – Aug. 2010)

Publicize the NGO to make people know about what it is as PR and help stores that sell goods people donate to help the poor, like Oxfam

Environmental Volunteer, Maximo Nivel, Cuzco, Peru (Jul. 2011 – Aug. 2011)

Assisted efforts to conserve jungles in South America by reducing deforestation and maintaining rainforest flora and fauna

 

Other Certificates

  • TOEIC (Test of English for international communication): 865
  • TOEFL iBT (Test of English as a Foreign Language): 80

 

Skills and Training

  1. Languages: a Native Speaker of Korean, English (fluent, written, oral, and reading)
  1. Microsoft office

 

Citizenship

  • Korean

Blog address I’ve wrote a comment is that http://www.economicshelp.org/blog/3597/economics/solutions-to-eu-crisis/comment-page-1/#comment-21627

About the result of EU summit

Last week, there was second summit of EU leaders in order to solve Euro zone debts crisis. They agreed to do two things that banks in the EU must satisfy a core capital ratio of 9% by mid- 2012. However, except that, it postponed reaching an agreement about detailed package for crisis until G20 summit. Furthermore, the agreement looks still far to get real solution to crisis. This is because the capital ratio was originally 5%. It will be 9%, and it means that by lifting its ratio from 5% to 9%, 61 European banks will be unsatisfied by that ratio. Other important agreement European leaders reached is that increasing of European Financial Stability Facility (EFSF) four or five times to €1 trillion ($1.4 billion). However, it is hard to prepare that amount of money, so France which has biggest percentage of burden suggest China funding European to prepare EFSF. If they succeed, it is very positive and turns the situation to be good.

 As I talked last post, they start finding solutions about debts crisis. However, this crisis need to more corporate between many countries like France and Germany. They both still want not to lose their profits, in case of France, cutting the values of bonds they bought.

 I will keep checking on this crisis until it finishes being in crisis because this crisis has effect on American, and the other countries.

European leaders tried to reach accordance on a plan for this economy crisis, debt crisis, at their second summit meeting, because their debt-relief plan was not talked in detailed. One provision of the plan that how much banks hold Greek debt was hard to resolve. European leaders require the banks to get about a 60 percent loss on the securities, though the banks offer much less. They attempt to settle a two-years-long debt crisis that has made market worry of Greek could default on its obligations and spread of the debt contagion to bigger European economies in Italy and Spain. Drafts of the plan request European banks to forgive billions dollars of Greek debt and to increase their own reserves about $150 billion. Also, the size of the continent’s bailout fund would be boosted to assist other debt-ridden countries.

I think it is going to be helpful for European debt crisis to relief debt-ridden countries if they reach an agreement. However, it seems very hard to get agreement on the plan to assist them.  For example, France said that Europe Central Bank (ECB) has to play significant roll to go through this crisis, but Germany thinks that ECB does not participate this situation. Moreover, Germany has an opinion that loss percentage of Greek bond holder goes up to maximum 50 percentages. On the other side, France that has large amount of Greek bond wants to keep loss percentage as 21 percentages which was set in July. I look forward to hearing good news soon.