Who could have ever predicted this?
Glad I’ve been building a solid crypto portfolio, looking forward to cashing in the last few years gains to buy some houses on the cheap again after the economy implodes.
Evergrande teeters on edge of default as $148M payment falls due
141–150 of 408 posts
Re: Evergrande teeters on edge of default as $148M payment falls due
#142Earlier quoted context omitted.
A) What do you propose the US do? B) Why should the US do anything? If your risk profile when dealing with Chinese companies doesn't include the risk that the CPC will change the rules of the game later to benefit the domestic economy, you're a sucker.
A) Fight back by limiting Chinese expansion with US financial influence. Sanctions, etc. B) The US should do something, because if they don't, China will continue to take advantage of US ineptness. States have powers which investors simply don't have.
If the US intervenes, they're branded as interlopers. If they don't, they're branded as inept. Seems like they're fucked either way in the eyes of the rest of the world.
Re: Evergrande teeters on edge of default as $148M payment falls due
#143Earlier quoted context omitted.
The US can keep issuing dollars for as long as they like. And you will buy these pieces of paper because they are backed by the US Military, the US Air Force and the US Navy.
They can keep issuing them. They will not have the same value, though.
No this rule does not apply in the US.
The US has printed 20% of all dollars ever existed since 2020. Check the exchange rates with any other currency, EUR, British sterling, Chinese RMB. Did it become cheaper? Of course not.
We will always buy USD, because it has as a collateral 8billion lives.
Re: Evergrande teeters on edge of default as $148M payment falls due
#144Isn’t $148 million like four meme NFTs? Why would a large company be teetering on the edge for such a small amount of money?
They need to pay that in USD not USDT. One of those can be printed at will by your NFT wash trading buddies. The other is not so easy to get ahold of.
Re: Evergrande teeters on edge of default as $148M payment falls due
#145Earlier quoted context omitted.
A) What do you propose the US do? B) Why should the US do anything? If your risk profile when dealing with Chinese companies doesn't include the risk that the CPC will change the rules of the game later to benefit the domestic economy, you're a sucker.
A) I'd suggest that there are a wide variety of options here, reciprocal actions are common in diplomacy, so for instance the US could default on an equal amount of US debt that China holds, or perhaps pass a law that in the case of the bankruptcy of US companies bonds owned by Chinese nationals at any time after the proposal of said law (to avoiding them just selling them) are void. Of course these options (and prob…
The market has a way of dealing with this. Chinese corporate debt is currently trading for pennies on the dollar. Chinese companies are going to be essentially locked out of global credit markets for the foreseeable future.
Re: Evergrande teeters on edge of default as $148M payment falls due
#146Speaking of misleading headlines: https://www.nytimes.com/2021/11/10/business/evergrande-bond-... https://archive.md/cPsjv "China Evergrande meets a Wednesday payment deadline for two of its bonds." On multiple levels, too. "It was not immediately clear whether it had made payment on the third bond, which matures in 2024, or if all of the investors in the other two bonds had received payment." So basically they MIGHT…
Apologies for responding to my own post, but if you do a Google news search for Evergrande the first link that pops up is: https://www.forexlive.com/news/!/evergrande-met-todays-bond-... The title on Google News is "Evergrande Met Today's Bond Payment Deadline" but if you click to the article the headline changes to "Evergrande met at least part of today's bond payment deadline". What is going on here?
AFAIK the challenge is that Evergrande and its bond holders don't make public statements about the repayments, so it's unclear whether they've been made or not.
However in this case it seems that a bondholder has explicitly stated that they have not been paid by the deadline https://twitter.com/dhthakur745/status/1458499174026997760?s...
Which means that, if true, Evergrande have now defaulted.
Re: Evergrande teeters on edge of default as $148M payment falls due
#147Earlier quoted context omitted.
The U.S. shouldn't protect investors from the free market? That's the free market at work. Investors are not entitled to be paid. All investments carry risk.
Yes, the CCP changing the rules is “the free market.”
If I build a company with the assumption that the rules of the locale it operates never change, I'm certain that I'm the fool in the conversation.
What you describe is a known risk that anyone with a lick of sense should be accounting for, before they invest.
Re: Evergrande teeters on edge of default as $148M payment falls due
#148Earlier quoted context omitted.
Uh, Tether?
because some guy on twitter said any Tether exposure to commercial paper = 150% exposure to imploding evergrande bonds this is the funniest meme, “we made it up” https://youtu.be/GM-e46xdcUo Its a pretty clever meme because pointing out how dumb it is makes it seem like that person doesnt believe there is anything else wrong with tether, immediate derailing their criticism of the latest rumor, allowing for literally…
I don't think Tether is in purely Evergrande bonds, but I do think Tether has a load of Chinese bonds/commercial paper, and if an Evergrande default causes a general reduction in the value of those, Tether will be in a very sticky position as they'll have a large hole in their reserves...
Re: Evergrande teeters on edge of default as $148M payment falls due
#149Earlier quoted context omitted.
Are you predicting large scale deflation? That’s the opposite of what we’re seeing now, but if it happens the fed can fix it by just printing money.
I’m far from an expert, but can the US Fed really print more money? Didn’t I hear that something like 30% of the USD in circulation today didn’t exist at the start of 2020? It has to stop somewhere. Doesn’t it? (Genuine question!)
Well, it doesn't _have_ to, ask Zimbabweans. But there are real reasons they would not want to print forever.
Re: Evergrande teeters on edge of default as $148M payment falls due
#150Earlier quoted context omitted.
The government should do everything* to protect me, the citizen. *Except the things that make me confused and angry, even if they benefit other citizens. Welcome to neoliberal hell.
Neoliberalism is an economic policy, it has nothing to do with liberal politics.
If we hamfist "politics" to mean nothing but culture war noise, then sure, economics and politics are separate. I always thought that people were smarter than that.