Is there a Global Crisis on its way?

USCTrojanCPA said:
nosuchreality said:
Meh, if we can patch up Long Term Capital, Goldman, BofA, Wells, Merrill, United, GM,  China can patch up theirs too.

It?s a giant house of cards of paper money of Wimpy hamburger IOUs for Next Tuesday.

As long as the wage slaves keep grinding it out every day for a shiny new cell phone, a fast food lunch and a place to sleep, it?ll march.

Seems like the noise is a lot of wage slaves are checking out.
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Just like the FED can keep kicking the can down the road forever so can the Chinese gov't, nothing to see here.
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Forever is a very long time. 

A new report today shows Chinese home prices are declining in what for them, is the hottest home buying season.  When 25% of GDP is tied to that one industry, it could be a sign of worse things to come.
 
Liar Loan said:
USCTrojanCPA said:
nosuchreality said:
Meh, if we can patch up Long Term Capital, Goldman, BofA, Wells, Merrill, United, GM,  China can patch up theirs too.

It?s a giant house of cards of paper money of Wimpy hamburger IOUs for Next Tuesday.

As long as the wage slaves keep grinding it out every day for a shiny new cell phone, a fast food lunch and a place to sleep, it?ll march.

Seems like the noise is a lot of wage slaves are checking out.
Click to expand...

Just like the FED can keep kicking the can down the road forever so can the Chinese gov't, nothing to see here.
Click to expand...

Forever is a very long time. 

A new report today shows Chinese home prices are declining in what for them, is the hottest home buying season.  When 25% of GDP is tied to that one industry, it could be a sign of worse things to come.
Click to expand...

Ok, let me rephrase....the FED and the Chinese gov't can kick the can down the road longer than any one of us will be alive. 
 
Well, do they have enough fingers to stick in the dyke?

Evergrande is ?just the beginning?: Professor says more firms must exit China?s property sector

China?s real estate sector has to be ?substantially smaller? to keep the overall economy healthy and stable, said Li Gan, economics professor at Texas A&M University.
?We have too big of a risk in the sector. We built too much housing, so the stabilization first has to come [from] trimming the sector,? said Gan.
Gan estimated that about 20% of China?s housing stock is left vacant, yet developers continue to build millions of new units each year.
[url]https://www.cnbc.com/2021/10/21/china-economy-property-sector-must-shrink-to-be-stable-says-prof.html?[/url]

China Evergrande shares briefly plunge more than 10%, after $2.6 billion asset sale falls through
 
Well thats one way to plug the dyke that we don't really have here...force the guy to cover his bets... ;D ;D >:D

China urges Evergrande founder to pay debt with personal wealth ? sources

BEIJING (Oct 26): Chinese authorities have told billionaire Hui Ka Yan to use his personal wealth to alleviate China Evergrande Group's deepening debt crisis, according to people familiar with the matter.

Beijing's directive to the Evergrande founder came after his company missed an initial Sept 23 deadline for a coupon payment on a dollar bond, said the people, asking not to be identified discussing a private matter. Local governments across China are monitoring Evergrande's bank accounts to ensure company cash is used to complete unfinished housing projects and not diverted to pay creditors, the people said.

The demand that Hui tap his own fortune to pay Evergrande's debt adds to signs that Beijing is reluctant to orchestrate a government rescue, even as the property giant's crisis spreads to other developers and sours sentiment in the real estate market. Chinese President Xi Jinping has been cracking down on the billionaire class as part of his "common prosperity" campaign to reduce the country's yawning wealth gap.

It is unclear whether Hui's fortune is big and liquid enough to make a sizeable dent in Evergrande's liabilities, which swelled to more than US$300 billion as of June. The developer's dollar bonds are trading at deep discounts to par value as investors brace for what could be one of China's largest-ever debt restructurings.

https://maa.theedgemarkets.com/article/china-urges-evergrande-founder-pay-debt-personal-wealth-%E2%80%94-sources
 
eyephone said:
CNBC: Empty shelves, gasoline shortages and sky-high energy prices? Britain is facing a ?difficult winter?

Britain has been plunged into uncertainty as issues over gasoline, electricity and food have prompted warnings of "a really difficult winter" for the country.
A significant lack of truck drivers has meant deliveries of fuel and goods have fallen short.
https://www.cnbc.com/2021/09/24/emp...e-shortages-uk-facing-a-difficult-winter.html
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Empty shelves on what items though? PS5? graphic cards? My day to day items that I am buying at Costco is never out of stock. If we are missing day to day items not being in shelves I think that could be a potential issue going forward but that is not the case.

Oil prices have ticked down lately and I think sky high is a bit exaggerated. Don't think these issues would cause a global crisis..
 
morekaos said:
Well thats one way to plug the dyke that we don't really have here...force the guy to cover his bets... ;D ;D >:D

China urges Evergrande founder to pay debt with personal wealth ? sources

BEIJING (Oct 26): Chinese authorities have told billionaire Hui Ka Yan to use his personal wealth to alleviate China Evergrande Group's deepening debt crisis, according to people familiar with the matter.

Beijing's directive to the Evergrande founder came after his company missed an initial Sept 23 deadline for a coupon payment on a dollar bond, said the people, asking not to be identified discussing a private matter. Local governments across China are monitoring Evergrande's bank accounts to ensure company cash is used to complete unfinished housing projects and not diverted to pay creditors, the people said.

The demand that Hui tap his own fortune to pay Evergrande's debt adds to signs that Beijing is reluctant to orchestrate a government rescue, even as the property giant's crisis spreads to other developers and sours sentiment in the real estate market. Chinese President Xi Jinping has been cracking down on the billionaire class as part of his "common prosperity" campaign to reduce the country's yawning wealth gap.

It is unclear whether Hui's fortune is big and liquid enough to make a sizeable dent in Evergrande's liabilities, which swelled to more than US$300 billion as of June. The developer's dollar bonds are trading at deep discounts to par value as investors brace for what could be one of China's largest-ever debt restructurings.

https://maa.theedgemarkets.com/article/china-urges-evergrande-founder-pay-debt-personal-wealth-%E2%80%94-sources
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Wow, I actually agree with China on this.
 
zubs said:
Everytime you think shits about to get real, something like this happens:
https://www.yahoo.com/finance/news/china-evergrande-shares-set-slide-012744967.html

A bond extension when they were suppose to go into default OCT 23.

The can will be kicked forever much like USA.


So when we play with stocks or real estate, we are just betting on government interventions. 
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Yup, and China has a stronger leg to keep kicking the can down the road for a long time.  I mean, what's the other option...revolution?  Yeah, that's not going to happen.
 
sleepy5136 said:
eyephone said:
CNBC: Empty shelves, gasoline shortages and sky-high energy prices? Britain is facing a ?difficult winter?

Britain has been plunged into uncertainty as issues over gasoline, electricity and food have prompted warnings of "a really difficult winter" for the country.
A significant lack of truck drivers has meant deliveries of fuel and goods have fallen short.
https://www.cnbc.com/2021/09/24/emp...e-shortages-uk-facing-a-difficult-winter.html
Click to expand...
Empty shelves on what items though? PS5? graphic cards? My day to day items that I am buying at Costco is never out of stock. If we are missing day to day items not being in shelves I think that could be a potential issue going forward but that is not the case.

Oil prices have ticked down lately and I think sky high is a bit exaggerated. Don't think these issues would cause a global crisis..
Click to expand...

That was a UK article. To show that there is an energy crisis around the world not just in the US as the other misinfo guy likes to state.
 
A lot of people complain about gas prices. Look at the UK some or most places are out of gas and/or have to wait a long time for gas. gg
 
The dyke is still leaking?

Chinese real estate developer Kaisa halts trading in Hong Kong, as debt concerns escalate

Hong Kong-listed Chinese real estate developer Kaisa Group Holdings and three of its subsidiaries suspended trading in their shares on Friday ahead of the market open.
Kaisa said Thursday that its finance unit missed a payment on a wealth management product, amid increased worries about its strained liquidity.
Among Chinese developers, the company ranks second only to Evergrande in terms of issuance of U.S. dollar-denominated offshore high-yield bonds, according to Natixis.[url]https://www.cnbc.com/2021/11/05/china-debt-concerns-property-developer-kaisa-halts-hong-kong-trading.html?[/url]
https://youtu.be/DOjSJTnC6Qw
 
It ain't over till its over..

World holds its breath as Chinese property titan Evergrande teeters on the brink of collapse

Financial institutions and developers around the world were on alert after Evergrande warned it will not be able to pay back its debts.

The Chinese property giant is understood to be on the brink of collapse with Asian and Western banks braced for the largest default since Lehman Brothers went bust in 2008.

Evergrande, which has debts of more than ?300billion, has been struggling to meet debt repayments since September. Much of the money is owed to firms outside China.

https://www.dailymail.co.uk/money/markets/article-10281101/World-holds-breath-Evergrande-teeters-brink-collapse.html
https://youtu.be/TmENMZFUU_0
 
morekaos said:
It ain't over till its over..

World holds its breath as Chinese property titan Evergrande teeters on the brink of collapse

Financial institutions and developers around the world were on alert after Evergrande warned it will not be able to pay back its debts.

The Chinese property giant is understood to be on the brink of collapse with Asian and Western banks braced for the largest default since Lehman Brothers went bust in 2008.

Evergrande, which has debts of more than ?300billion, has been struggling to meet debt repayments since September. Much of the money is owed to firms outside China.

https://www.dailymail.co.uk/money/markets/article-10281101/World-holds-breath-Evergrande-teeters-brink-collapse.html
https://youtu.be/TmENMZFUU_0
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Let's be real, Blackrock holds barely anything.

As for UBS exposure, here is the following quote from them:
"UBS Group AG?s exposure to stricken property developer China Evergrande Group is ?immaterial? and limited to the execution of collateral calls on margin loans, Chief Executive Officer Ralph Hamers said Thursday."https://www.bloomberg.com/news/arti...vergrande-exposure-as-dollar-bond-doubts-grow

For Bluebay, it's also limited exposure: "BlueBay told Reuters its holding was "very limited" and that it has been reducing it since August-end."https://money.usnews.com/investing/...ergrande-debt-ashmore-ubs-exposed-morningstar

It's easy to throw articles to try to scare everyone. Just like how there were articles of all these "famous" hedge fund managers going on CNBC or writing an article saying "the worst crash and bubble is yet to come". And here we are today with the S&P up 2%+ and NASDAQ up 3%+
 
This is following the Japan Late 80's -90's asset crash.  We did just fine.  They flattened out for the next 20 years.  Cycles gotta cycle.
 
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