We still don't know what the exposure to the US market is. I think there are a few ETFs that had Evergrande bonds and will get crushed, but that'll barely register a ripple on the surface. Most of that shit is private offering, not in people's 401Ks or accessible to retail investors.
Really complex instruments like Total Return Swaps on Evergande bonds (which are possibly in use by big 5 banks and almost definitely by the likes of Blackrock and Bridgewater) are completely opaque, so we may not know for another 30-60 days how deep the shit is that they're in.
If BW gets fucked, no big loss. Not gonna kill the market. Blackrock is big enough to withstand some pretty heavy losses, but might need to dump some assets- which could ripple either the stock market (don't worry, J-POW will just buy the bad bonds in a repurchase authorization to keep it from sinking and call it QE) or the real estate market (which could be really good, deflating prices back towards normal).
What happens when ours and theirs collapse? Are we just trying to see who can hold out longer?
X22Report is very focused on this. I am certain Dave will cover this. In addition to talking about your health.
We still don't know what the exposure to the US market is. I think there are a few ETFs that had Evergrande bonds and will get crushed, but that'll barely register a ripple on the surface. Most of that shit is private offering, not in people's 401Ks or accessible to retail investors.
Really complex instruments like Total Return Swaps on Evergande bonds (which are possibly in use by big 5 banks and almost definitely by the likes of Blackrock and Bridgewater) are completely opaque, so we may not know for another 30-60 days how deep the shit is that they're in.
If BW gets fucked, no big loss. Not gonna kill the market. Blackrock is big enough to withstand some pretty heavy losses, but might need to dump some assets- which could ripple either the stock market (don't worry, J-POW will just buy the bad bonds in a repurchase authorization to keep it from sinking and call it QE) or the real estate market (which could be really good, deflating prices back towards normal).