The global financial nuclear time bomb

[sharkman]

Another week and another bankruptcy.

https://www.the-sun.com/money/9218328/bankrupt-airlines-western-global-iaero-sas/

THREE major airlines have faced bankruptcy deadlines in the past month following years of turbulence in the travel industry.

Western Global, iAero, and SAS had major deadlines in their bankruptcy proceedings in September.

...

"All three airlines reported losing hundreds of millions of dollars while operating through the pandemic.

Airlines generally struggled through 2020 and 2021 as pandemic lockdowns, lower travel rates, and worker shortages created headwinds throughout the industry.Some companies faced struggles in 2022 with increasingly inclement weather - particularly Southwest Airlines.But the industry has largely recovered from the period with high travel rates, increased ticket prices, and new worker's agreements."

 

I'm not surprised, quite frankly.  After a pandemic with forced lockdowns across the globe, with many restrictions hanging on way too long as things returned to normal, yeah, there was going to be carnage in the airline industry.  And I'm sure that cruise liners, and tourism industries across the globe have suffered greatly under the pandemic. 

So what does the WHO and the WEF want(and just how is it that these unelected bureaucrats have any power over Canada?), now that everyone is carrying antibodies for C-19 as we head into another wave?  More restrictions and jabs for everyone, of course.  Hey, they will probably resume interest rate hikes as well.  I wish I was making this up.

Edited October 2, 2023 by sharkman

[cannuck]

On 10/2/2023 at 1:03 PM, sharkman said:

So what does the WHO and the WEF want(and just how is it that these unelected bureaucrats have any power over Canada?), now that everyone is carrying antibodies for C-19 as we head into another wave? 

To fully appreciate that you need to look back just over 90 years.  The really big greed grab that went crash in 1929 resulted in some serious re-think of financial regulation and laws were made, regulations written and the back rooms had a lot of meetings.  When FDR told the banksters that he would tax every penny of earnings over $250,000 the shit hit the fan.  In the end, after all of the leverage they could manage the top tax rate dropped to IIRC 95%.  The Banksters had moved their game to New York because it was pretty loosely regulated, they had a fair bit of influence, the Greenback was rising to global hegemony and they actually OWNED (and OWN) the central bank (courtesy of Woody Wilson).  They could just speculate on anything they chose and pass the bill for increasing the money supply onto the US taxpayer.

From that confrontation with FDR, the banksters pledged to use all of their power, money, influence - whatever it would take to infiltrate every governing, regulatory and enforcement agency that could effect their business.   Money has literally no partisan home, all the political BS is a smokescreen so we don't bother looking behind the curtain.  Ever wonder why virtually every administration for decades has been run financially by top dogs of ONE company?   That's how you get "too big to fail".   Banksters now reward themselves for their treachery since they literally run the show.

BTW:   Anyone else remember Ronny Ray-Gun coming onto your boob tube and telling you not to trust government pensions but give your money to Wall Street in a 401K?   Part of the strategy to include as many as possible into the fantasy that finance was there for YOU.

Edited October 9, 2023 by cannuck

[sharkman]

The BRICS countries have been selling off US treasuries this year.

https://www.fishercapitalgroup.com/brics-countries-dump-123-billion-in-u-s-treasuries-in-2023

“In 2023, BRICS offloaded $122.7 billion in U.S. Treasury bonds and is staying away from the government’s debt. BRICS member China is the highest, as it offloaded $117.4 billion worth of U.S. government debt this year. Between June and July, China reduced its holdings from $835.4 billion to $821.8 billion, a decline of $13.6 billion.

Other BRICS member Brazil followed suit and reduced its U.S. Treasury holdings this year. Brazil’s U.S. treasury declined from $227.4 billion in June to $224.7 billion in July, a slump of $2.7 billion.”

As you can see, the BRICS is holding over a trillion in US treasuries.  India and Japan are also selling and buying their own currencies in order to prop them up.  

 

[sharkman]

Another warning from industry insiders.  
 

https://m.ca.investing.com/news/stock-market-news/jpmorgan-expects-significant-eps-downgrades-tells-clients-to-pare-back-risk-into-2024-432SI-3187465?ampMode=1

A combination of slowing inflation and weakening consumer strength is expected to result in significant earnings downgrades, leading to potential equity market drawdowns and defensive sector and style rotations, according to JPMorgan strategists.

…

While the USA and Japan continue to post minor EPS upgrades, Asia Pacific ex-Japan, GEM, and Europe are leading global revisions to the downside. 

The JPMorgan strategists also highlighted the rare deviation between the macroeconomy and profits in 2023 due to high inflation and consumer strength, both of which are now reversing.

[sharkman]

I’ll just leave this here:

https://www.cnbc.com/2024/01/29/evergrande-shares-halted-after-hong-kong-court-orders-liquidation-.html

Shares of China Evergrandewere halted after plunging more than 20% in early trading Monday after a Hong Kong court ruled to liquidate the embattled property developer.

It comes against the backdrop of a spiraling debt crisis in the country.

 

 

 

 

[Moonbox]

[sharkman]

https://www.zerohedge.com/markets/who-could-be-next-largest-canadian-pension-fund-sells-manhattan-office-tower-1

"Canada Pension Plan Investment Board has recently done three deals at deeply discounted prices, selling its interests in a pair of Vancouver towers, and a business park in Southern California, but it was its Manhattan office tower redevelopment project that shocked the industry: the Canadian asset manager sold its stake for just $1. The worry now is that such firesales will set an example for other major investors seeking a way out of the turmoil too…"

 

 

Edited March 1 by sharkman

[sharkman]

It's kind of funny.  While billions in value were lost on the stock markets around the world this last week, your typical consumer has no idea as this thing looms over their futures.  Here's another one for you:  A half block sized office building in New York sold for a 97% discount after receiving only one bid.  That's a price of 8.5 million, folks.

https://finance.yahoo.com/news/huge-midtown-office-building-sells-193820275.html

Quote

Even remote work-weary developers and sales brokers well aware how badly working from home has impacted buildings’ values say that such a discount is unheard of — and couldn’t think of a similar one in recent memory.

Quote

Once the home to such companies as jewelry retailer Zales, the New York Telephone Company (Verizon’s predecessor) and Sports Illustrated, the 23-story goliath today sits 65% vacant, despite a pretty prime location across Sixth Avenue from Radio City.

When this trend works its way through the commercial real estate markets as corporations can't pay their bills(half empty buildings put them in a negative cash flow position), there will be lay offs like we haven't seen in a very long time.

 

 

 

 

 

[Michael Hardner]

9 hours ago, sharkman said:

It's kind of funny.  While billions in value were lost on the stock markets around the world this last week, your typical consumer has no idea as this thing looms over their futures.   

This struck me, because as the market was setting records, ordinary People were trying to make ends meet.... 

[sharkman]

On 8/4/2024 at 5:16 AM, Michael Hardner said:

This struck me, because as the market was setting records, ordinary People were trying to make ends meet.... 

When the market is setting records, it’s not signalling that peoples’ jobs are at risk.  Days like today, a third day of heavy market losses and volatility, does.  And people stop spending money as a result, which can cause more pain in the markets.

[sharkman]

I am hearing that various markets around the globe are hurting today.  Japan has its worst day since Black Monday, 37 years ago.

https://www.cnbc.com/2024/08/05/asia-markets.html

The Dow down around a 1000 and the day is young.  I wonder what moonbox thinks about this.

The Nasdaq is down 2% at this time, roughly equivalent to the Dow's negative performance.

Bitcoin is doing very badly.  Down last week and now this, 8% at this time.

https://www.cnbc.com/quotes/BTC.CM=

 

 

Edited August 5 by sharkman