Hi readers
How good are the markets around the world, there all at record highs and why would you be worried.
Sinic Holdings has officially defaulted and the government has blamed management for it.
Sinic Holdings has defaulted on US Bond holders to the tune of $694 million, which isn't much when you think about it but Evergrande grace is just about up and by Friday we will know if they to have officially defaulted. There amounts are in the Billions and we know who is holding the majority of the paper there.
Should that become official, bond holders can call in administrators to seize assets and liquidate the firm.
Most of you think that's no big deal its in China so who cares, well the issue is Evergrande has construction in Sydney, Melbourne, London, New York, Chicago, California, San Francisco, Hong Kong, Auckland and in Canada just to name a few. If I was to put every construction site believe me this post will be massive.
What that tells you is that construction sites world wide are about to get a shock of there life.
Jobs will stop people will be sacked and down payment deposits will be lost.
As many don't seem to get it, the Chinese government wants this to happen to cut the gambling of property purchases. People over there buy and hold, don't rent them out only to sell them at a higher prices in a couple of years time.
Similar attitudes have been happening in the western world, Melbourne has 694,022 empty house/apartment properties while Sydney is 912,031.
The reason we know these properties are vacant is there is no water or power charges going to the properties.
On a funny note in the last post I missed the sales numbers of property in China by 3 hours.
So here they are from August 1st to September 30th property values in China have fallen 35.12% yep in 2 months. Property sales numbers are down over 90% from a year ago. So what does that say about the property values in your area.
Central Banks have open the inflation box and its running away from them, they know it but are hoping the FED start the ball rolling first before they do.
The EU is coming out with hollow words and the Bank of England are prepared to go at it alone.
Germany is making there concerns know to the EU and its just a matter of time before they move. The deflationary dog wont come until middle to late next year so in the mean time inflation will power higher. What the reserve bank does here in Australia is keep talking, they wont want to act until the FED moves first and then they will be the escape goat, as not to take blame for it come election time 2022.
In the stock markets the gambling continues, there are more option trades in dollar value going through than stock purchases. What does that tell you?
In the Crypto space we are seeing long term holders of bitcoin selling and riding this belief that the ETF's will own bitcoin.
For those who aren't aware the ETF's that have been approved will be holders of the derivative (futures contract) not the actual bitcoin itself. So just be aware of it.
The one thing I have learnt about the crypto market is that it can stay up much longer than you might think as the world trades it. But once it falls then it can really fall.
For those concerned about my previous posts learn to live with it, simply based on astrological aspects and how I interpret it, if you don't agree that's your choice.
As always use the above as an indicator to your own work.
The above is based on astrological aspects.
I'm not a financial advisor, I am a financial Astrologer.
Seek your own professional advise on the above
