(05-13-2021, 08:33 AM)John J. Xenakis Wrote: ** 12-May-2021 World View: Taiwan Stock Exchange crashes on leverage unwinding
- Margin calls / Market leverage -- 2011-pressent -- Taiwan stock exchange (Bloomberg)
This is EXACTLY the kind of thing that causes a major financial panic
and crash -- when the market is over-leveraged with margin debt, and
the debts start to unwind.
The Taiwan stock exchange index crashed 9% on Wednesday, due to panic
over unwinding leverage.
We've previously talked about the possibility of a global financial
panic on May 28, about 7 weeks past the end of first quarter. This
may be one step along that path.
Then you'll learn what the word "deflation" really means.
---- Source:
-- Taiwan Stock Crash Shows World Dangers of Too Much Leverage
https://www.bloombergquint.com/markets/t...ons-expiry
(Bloomberg, 12-May-2021)
![[Image: 1200x-1.png]](https://assets.bwbx.io/images/users/iqjWHBFdfxIU/invdAc0AgOF8/v2/1200x-1.png)
This couldn't have anything to do with fear of the giant neighbor? In the event of an invasion, debts in Taiwan might be difficult to collect. Creditors typically want to cash out in a shaky situation. In Taiwan, those who hold the debt might want to go elsewhere and start anew. It's easier to start anew flush with cash than broke. For many creditors, debt that they hold is nearly as valuable as the cash that it could represent. Such is not so in a politically-compromised situation such as a sharp change in the form of government.
The ideal subject of totalitarian rule is not the convinced Nazi or the dedicated Communist but instead the people for whom the distinction between fact and fiction, true and false, no longer exists -- Hannah Arendt.
