India's Lehman has arrived

Discussion in 'Wall St. News' started by Stockolio, Apr 11, 2019.

  1. ironchef

    ironchef

    Compare to 20-30 years ago, they have both come a long long way under two very different political systems, pointing to the resourcefulness of their people. I cannot honestly say the same about countries in Central, South America and Africa.
     
    #11     Apr 14, 2019
  2. Stockolio

    Stockolio

    China and India for the most part have good economies, high IQ's and hard working... The best Immigration a country can get is usually Citizens from those two countries no doubt. Both countries Corporate sector went beyond fantasy in there debt, and it's gonna explode real bad for India anytime now, China second half of 2019-2020. The sheer amount of Debt Maturity and the fact nobody has it, is really serious and under appreciated by Retail traders. India is literally at the Lehman stage

    Some people are under estimating the consequences of a banking collapse in those two countries, Oil and other Commodities are gonna take a serious hit, Debt Servicing for companies in Commodities will take a hit, it's a chain reaction. Will India's total shadow banking collapse and default wave affect JP Morgan ? Likely no and minimal if anything, but it will greatly effect Commodities demand, Chemicals demand will drop big time also... Between both countries is about 2.8 Billion people, banking crisis affecting 2.8 Billion people will have serious blowbacks on many industries.

    Once Elections are done, I have a bad feeling for there banking sector
     
    #12     Apr 14, 2019
  3. Stockolio

    Stockolio

    The stiffing of Mutual Funds begins...

    https://economictimes.indiatimes.co...nvestors-should-know/articleshow/68860744.cms

    Are all FMPs in trouble?
    Apart from Kotak MF and HDFC MF, several other fund companies have exposure to debt instruments of the Zee Group. Of the total exposure of Rs 7,500 crore to the troubled entities, around Rs 1,400 crore is held by FMPs. Most of the FMPs with exposure to Zee Group are from the stables of Kotak MF, HDFC MF, Aditya Birla Sun Life MF and Reliance MF.

    FMPs coming up for maturity are likely to either roll over the maturity date or delay payments
    to investors. In some schemes, exposure to Zee Group entities is as high as 20% of the scheme corpus. Investors in these schemes will take a hit.

    What can I do now?
    Investors in closed-ended FMPs cannot exit during the tenure of the scheme. While these are listed on exchanges and are, therefore, tradeable, the trading volumes are very poor. This limits the investor’s ability to exit the scheme at a fair price.

    When faced with default, if the fund house is offering to extend the scheme maturity date, it better to agree to the rollover. It gives the investor a chance to get back the full amount on maturity. If not, the investor will have to take a haircut on the maturity proceeds. If the fund house is part-paying on maturity, investors have no option but to wait for the fund house to recover the remaining amount.
     
    #13     Apr 15, 2019
  4. Stockolio

    Stockolio

    https://www.bbc.com/news/business-47934518

    The troubled Indian airline Jet Airways has failed to secure emergency funding from its lenders.

    The company, which last week suspended all international flights, has extended the cancellation period until Thursday.

    It was India's second-largest airline by market share, until recently. But dozens of its planes have been seized by creditors, leaving the firm with only seven operational aircraft.

    A critical gap in Asian connectivity has already become apparent as a result of the Jet Airways crisis. Demand for travel between India and Hong Kong, for example, is so high that passengers and airlines are now up against a capacity crisis that has sent airfares soaring.

    While nothing is decided, the airline may simply fall into a permanent grounding. Competitors will have to find a way to close the gap. Tata Group’s Vistara, which itself has ambitions to grow its international routes, has not bid for a stake in Jet Airways. Instead, it appears to be waiting for Jet Airways to crumble so it can buy up the pieces.
     
    #14     Apr 15, 2019
  5. ironchef

    ironchef

    I am no economist, just want to understand:

    Cann't they pull a post 1989 Japan? In that scenario, Japanese banks were under tremendous pressure, but with Government support, no collapse of the economy, just the market and it didn't hurt the average citizen that much.

    Both countries, especially China do not have true free market economy so manipulation is very possible?
     
    #15     Apr 15, 2019
  6. RedDuke

    RedDuke

    Neither do we in US, as we all learned in 2008.
     
    #16     Apr 15, 2019
  7. ironchef

    ironchef

    So if they really get in trouble, they just have to do what we did back in 2009 and will be fine?
     
    #17     Apr 15, 2019
  8. RedDuke

    RedDuke

    Hopefully the trick will work again.
     
    #18     Apr 15, 2019
    ironchef likes this.
  9. Stockolio

    Stockolio

    Jet airways down 26 % at the moment
     
    #19     Apr 18, 2019
  10. Stockolio

    Stockolio

    #20     May 1, 2019
    Snuskpelle likes this.