Did Fitch know something? Granted Evergrande has been fucked over for over a year and somehow keeps floating by but is this the end?
Posted Aug 18, 2023, 1:56 PM UTC
No.
The Fitch downgrade has nothing to do with Evergrande. The banks are way underwater on a bunch of shit they're holding, including US Treasury notes.
The Evergrande thing is just extra fuel on the fire.
Turning into a bonfire of fuk real quick
I'm holding a pretty solid hedge; let it burn.
Mind sharing that hedge? I wonder what could it be?
Toilet paper and cigarettes. Duh!
More like bond fire of fuk. I'll show myself out.
I chuckled
Evergrande bonds are already dead really.
It's that Garden something, Chinese resi developer that's the new hotness this week.
Yeah, you're right... though I'm not so sure that those bonds are properly dead yet. I can't help but think someone's using them as zombie collateral somewhere
I was also kind of using Evergrande as a catch all for Chinese real estate.
It's all one big, interconnected dumpster fire.
I can't help but think someone's using them as zombie collateral somewhere
I read an article yesterday that talked about how Bitcoin was supposed to do well given the inflationary environment, but it "seems to be tracking the broader market at large instead".
I'm pretty sure that's what crypto IS. They've got some rehypothecation scheme intertwined with a shared collateral scheme.
Country Garden...
Sometimes there's just a flock of black swans. I'm sure it's fine (/s)
Also they didn’t even downgrade this week, that was back in June. This was a warning that they may have to… A bank saying they may have to do something is like a con artist giving you a good deal.
Correct, but to be more precise: they downgraded the entire banking sector back in June and now they're warning that they can't really have banks rated higher than the sector they're in.
Fitch is basically telling the whole world that the banks are underwater and ever so slightly fucked.
Superstonk coverage for additional thoughts/opinions:
Essentially the ratings agency SHOULD know more but the inside joke is that they are the last to know. Since Evergrande has been in default for over a year and a half should tell us that Fitch and all the other rating agencies are slow.
The banking stress tests have always been a year behind, with the most recent one going over last years data, I would expect they saw something that they are not telling others.
This train wreck has been crashing for awhile, and soon there will be no more can kicking.
They do know. Let’s not pretend like they don’t understand what part they play in all this. Rating agencies have known. It’s not until the biggest players have positioned themselves to benefit the most that we hear about rating changes. That’s a feature. But also a sign that we’re closing in on a widespread crash
The rating agencies were just as involved in the dirtiness of the 2008 crashes as the banks or AIG. They were the ones giving AAA credit ratings to the tranches of MBS bonds that ultimately caused the shutdown of the financial system. The AAA ratings allowed the bonds to be sold to pension funds and foreign governments. Which is why an American issue became an international problem. The ratings agencies are just as dirty as everyone else in the financial system. Just because they downgraded US bonds doesn’t mean they are doing it for the right reasons.
should tell us that Fitch and all the other rating agencies are slow.
They make money by being "optimistic". They're not slow. They're perversely incentivized.
Citizens Bank
If I had a share for everytime I saw the phrase "end game"
Yea last week the sub was full of 'forget evergrande it was a nothing here's why or the next big thing' this week it's back to evergrande
“end game”…… 🥱
The economy has been honked!🤡🌎
They better know something over there at a ratings agency!
lol - they're supposed to be digging thru the risks.
In short, yes. As the events play out it will be interesting to see what global or political event will be shoved into the spotlight to distract everyone.
UFOs of course!
For real.
The ufo shit is pretty crazy honestly. Congress bumping heads with Pentagon and defense contractors over secret stuff. It's exciting
Boom Bust Boom Bust, It's Capitalism, So What's The Fuss?
Dunno why I wrote that but really, this is the system we are in, greed just doing what greed does and the majority will pay the price.
Honestly they probably just started reading K’s and Q’s - a lot of this ugly shit is 100% public people just ignore it.
Take Te$la - they lowered prices and deliveries went up - everyone forgets to see if Margin is squeezed. This is just Bulls being morons.
I feel that there is so much corruption that endgame will only come when we lock the float
That’s the only thing we can foresee and hope to rely upon. And it will happen. It could also happen for other black swan reasons but that’s a baseless dream that we can’t predict and comments are full of people who have their hope in something other than DRS.
Of course
FITCH KNOWS
I'm willing to bet the elites first pumped the markets near all time highs then decided to start taking orofits so put positions in place. Afterwards wait 1-2 m and then come out with Michael burry shorting markets then media spams. Credit downgrade usa credit downgrade banks. Evergrande bankruptcy when we knew 2 yrs ago...
Mainstar kuffing up ira drs and hf gained 1-2 m extra liquidity from stolen stonks. Well borrowed just without consent.
Oh all the while just as planned.
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Is this all a coincidence with all the downgrades and bad debt banks are holding? Have shorts and hedgies been hiding behind Evergrande's shitty bonds? Will Marge be calling?
It's called speculation / Opinion for a reason.