On Tuesday, North Korea bombed South Korea’s Yeonpyeong Island, which is located in the Yellow Sea just off the west coast of North Korea. The assault resulted in the death of four people and the destruction of dozens of homes. As the week progressed, South Korea’s defense minister resigned because he was not prepared for the attack and tensions in the region increased.
MY TAKE: North Korea is considered a “rogue nation” on the international scene and this action coupled with increasing concerns about its highly enriched uranium program is very unsettling. While South Korea has yet to initiate a strong response to the attack, news reports suggest additional military action may take place. Such action would likely increase the volatility in most global markets.