Evergrande Wealth Management Products - A Ponzi Scheme?
Send us a textIn an interview with local media, an Evergrande financial adviser said the products were a type of “supply chain finance”. While the money from retail investors may in years past have gone to its suppliers, the Evergrande executives in Shenzhen receiving retail investors said this was no longer the case.One of the executives of Evergrande’s wealth management division said Hubei Gangdun was just a shell company. “Proceeds from the Wealth Management Products have been used to brid...
22 Syys 20219min
Evergrande Crisis Intensifies
Send us a textThe liquidity crisis at Chinese property developer Evergrande shook global markets this morning with stocks falling in Asia, Europe and New York.The S&P 500 fell 2.1 per cent in afternoon trading, while the Nasdaq Composite slipped 2.6 per cent. The Vix, which measures expected volatility on the S&P, hit 26.5 — around its highest level since May.Monday’s sell-off came after shares in Evergrande, the world’s most indebted property developer, closed 10 per cent lower in Ho...
21 Syys 20219min
Evergrande - China Faces a Potential Lehman Moment
Send us a textThe implosion of Lehman Brothers, 13 years ago this week, showed the world how the collapse of a single company can send shockwaves around the world. Echoes from that event are resounding today as a massive Chinese property developer teeters on the brink of default.The collapse of Evergrande Real Estate Group - China's second-largest property developer with $310 billion of debt outstanding, could set off a chain reaction that spreads overseas.Wall Street is keeping a...
18 Syys 20219min
Investing In Collectibles - Are NFT's Digital Beanie Babies?
Send us a textThe Beanie Babies Bubble is a particularly entertaining story which highlights all the hallmarks of a mania. Mass delusion. Speculation. Out of control expectations. The herd mentality.Right now, it might appear that we are in another collectibles boom, in February this year, a Michael Jordan basketball card sold for $738,000 at auction. The exact same card had traded for more than half a million dollars less just a few weeks earlier. A Klon Centaur guitar effects pedal is being...
16 Syys 202115min
The Difference Between Trading And Investing
Send us a textIn today's podcast Patrick discusses the famous Warren Buffett quote “calling someone who trades actively in the market an investor “is like calling someone who repeatedly engages in one-night stands a romantic.” from his 1991 letter to investors.Topics covered are: what is the difference between trading and investing? Is one better than the other, and does it make sense to discourage short term trading? Patrick's Books:Statistics For The Trading Floor: https://amzn....
9 Syys 202113min
Billionaires Who Lost Everything
Send us a textAccording to Forbes Magazine there are 2,755 billionaires in the world today. The top five industries where they made their money are Finance, Technology, Manufacturing, Retail and Healthcare. It is rare to become a billionaire, but even more unusual to reach that level and then lose everything, but it is not unheard of. Today we’ll look at ten one-time billionaires who later went bankrupt, and one whose net worth fell from eight billion dollars to two million dollar...
2 Syys 202123min
Do Central Bankers Care About Rising House Prices?
Send us a textWhy don’t central bankers care about rising asset prices?For most people their greatest expense is housing. According to the Bureau of Labor Statistics, Americans spend almost 40% of their take home pay on shelter, this might lead you to ask - why aren’t home prices included in measures of inflation? And should they be? Is real inflation much higher than is being reported in the CPI because of asset price inflation? Patrick's Books:Statistics For The Trading Floor: h...
26 Elo 202116min
Should Politicians Trade Stocks? Congressional Insider Trading
Send us a textInsider trading, or the act of buying or selling investments based on nonpublic information, is against the law in the United States and in most countries. At its core, insider trading benefits well connected investors at the expense of the general public and it has been illegal in the US since 1934 – at least for corporate insiders. I made a video a few months ago on the biggest insider trading scandals, and a lot you asked in the comments section “what about politicians”...
17 Elo 20218min
