Dear friends,
The Collapse of SVB (Silicon Valley Bank) was due to FED QT
And as FED raise interest rates further we will see more Banks crashing. And contagion will spread.
In July 2 1997 the Thai bath exchange was suspended as it crashed. Then contagion spread to Malaysia, Indonesia, Korea & others
Leading to a collapse
It was due to Foreign Funds fleeing the Asian Markets Plus Very High USA dollar denominated debt which they were unable to service
Foreign Funds & Local companies took on US debts as the interest rate in Asia was then at double digits & in USA interest rate was cheap
Never in their wildest imagination that their currencies crashed by up to 50% to 70% against the US dollar
Many became insolvent & gone bankrupt
Never in the minds of SVB bankers and others their cheap bond bought at 1.6% yield spiraled to over 4.2% in such a short time
Now let Calvin illustrates the reason why
In Asia there was actually no miracle in the 1993s stock market boom or economic boom, according to Paul Krugman
It was these floods of foreign monies that pushed them up
And the "subsequent withdrawal" of liquidity caused a Huge Collapse
Same goes for the US Dow, Nasdaq & S&P
The markets went up all due to money PRINTING
FED INCREASED DEBT FROM USD6 TRILLIONS TO USD31 TRILLIONS
https://www.usdebtclock.org/
THIS TIDAL WAVE OF MONIES FLOWED INTO THE BANKS AS :FREE MONIES" INFLATING ALL ASSET CLASSES LIKE STOCKS, BONDS, PROPERTIES, COLLECTIBLES, ARTS & EVERYTHING UNDER THE SUN
"THIS ARTIFICIAL PROSPERITY" ONLY HAPPENED TO THOSE RICH PEOPLE AND THOSE WHO OWN ASSETS
BUT NOT THE COMMON MAN ON THE STREET WHO EARNED "FIXED INCOME" LIKE PENSIONERS (SEE IN FRANCE PENSIONERS PROTESTING) IN UK ALL TEACHERS, GOVT WORKERS, SOCIAL WORKERS, FIREMAN, SOLDIERS, CLEANERS * ALL ON "FIXED INCOME" ARE ALL SUFFERING HIGH INFLATION AND NOW PROTESTING
AS SUCH THE DANGER OF REVOLUTION
THE FRENCH REVOLUTION
THE ARAB SPRING REVOLUTION
AND COMING SOON WIILL BE WORLD WIDE UNREST
THUS FED HAS TO RAISE INTEREST RATE AND NOW IMPLEMENT QT (QUATITATIVE TIGHTENING)
OR IN OTHER WORDS
"SUCK BACK MONIES FROM THE SYSTEM" TO CAUSE A FALL IN PRICES
THIS WILL BE PAINFUL FOR THE RICH & ASSET HOLDERS
BUT IT WILL NOT STOP THERE
IT WILL BE LIKE A DOMINO THAT HIT EVERY ONE!!
THE MEDICINE WILL BE BITTER
BUT POWELL SEES IT AS THE CURE
IS IT TOO LATE?
NO ONE KNOWS
NOW LOOK THESE TWO SCENES
1) ASSETS RISING ARE JUST LIKE AN INCOMING TIDE ON THE SHORE
WHEN TIDE COMES IN ALL SHIPS, BOATS & VESSELS ARE LIFTED UP
CONVERSELY, WHEN TIDE GOES OUT ALL ARE LEFT HIGH AND DRY
OR TORRENTIOUS RAIN FILLING A RESERVOIR
THEN NO RAIN BUT A VERY HOT SUN THAT EVAPORATES ALL MOISTURE AWAY LEADING TO STARVATION AND DEATH
THEIR OWNERS DO NOT HAVE ENOUGH ACCESS TO WATER
SO FED REMOVING LIQUIDITY FROM MARKET WILL CAUSE THE "DEATH" OF COMPANIES IF THEY DON'T HAVE "CASH RESERVE" OR ASSETS THAT CAN BE SOLD FOR CASH (LIQUIDITY)
IN THIS CONTEXT NOW IS NOT THE TIME TO GO INTO BUSINESS EXPANSION UNLESS YOU HAVE A "STORE OF RESERVE CASH"
LIKE A RESERVIOR FULL OF STORED WATER
NOW CALVIN HOPE ALL WILL TAKE HEED
AND KEEP VERY VERY VERY SAFE
With Kind Regards
Calvin Tan
Created by calvintaneng | Aug 23, 2024
Created by calvintaneng | Aug 22, 2024
Created by calvintaneng | Aug 03, 2024
Note:
Avoid those that borrowed to give dividends and support prices
GO FOR GENUINE COMPANIES WITH REAL EARNING PROSPECTS & NET CASH GIVING OUT GOOD DIVIDENDS BEST!
2023-03-25 12:55
When Fed printed money under QE or Quite Easy
Things were up at ease and all are happy
Now is QT or Quite Tough
Tough times have come
But again "Tough times never last but tough people do"
And businesses that can survive tough times will flourish again
2023-03-25 15:04
https://www.theedgemarkets.com/node/659397
Fitch Solutions: Malaysia emerging as one of Asia-Pacific's key digital infrastructure hubs
2023-03-28 12:58
calvintaneng
GO FOR RECESSION PROOF COMPANIES
BEST WITH NO DEBT OR GEARING
BETTER STILL THOSE IN NET CASH POSITION
AND THOSE THAT CAN GIVE GOOD DIVIDENDS IN TIMES LIKE THESE ARE PAR EXCELLENCE!!
2023-03-25 12:53