Michael Perry’s “Big Short” sounds the alarm about tensions between China and the United States

Michael Perry’s “Big Short” sounds the alarm about tensions between China and the United States

Michael Perry became a legend after the 2008 financial crisis.

This crisis, marked by the collapse of the real estate market fueled by subprime mortgages, is considered one of the most serious since the Great Depression.

Bury’s genius was captured in the 2015 movie “Big Short.” This film describes how Barry, who had no particular experience in finance and real estate, realized that the real estate sector had become a sandcastle with financiers and bankers devising bizarre financial products around household mortgages. Financially fragile and poor credit borrowers.

So the financier decided to bet on the mortgage meltdown, hence the name “Big Short”. History has proven him right.

Had the federal government not intervened, the financial system as we know it would have collapsed. However, there have been major victims, such as investment bank Lehman Brothers, which disappeared in September 2008, and investment bank Bear Stearns, which collapsed and was sold to JPMorgan Chase in March 2008.

China is not Russia

Since then, the investor who heads Scion Asset Management has been considered one of the birds of misfortune in financial circles. He seems to be marrying the role since he adopted Cassandra as his Twitter profile name. Cassandra is a person who predicts the future by giving unfavorable results to events. All this derives from Cassandra, the daughter of the Trojan king Priam in Greek mythology. She was able to predict the future but was not listened to.

If he had not been listened to by the bankers who were trying to warn him before the 2008 crisis erupted, Perry made all his predictions come to everyone’s attention.

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Bury, who fears that US financial markets will not bottom out despite the disastrous performance since the beginning of the year, is warning of tensions between the United States and China, the world’s two largest economies.

Puri wrote on Twitter on September 21: β€œChina markets are experiencing an ‘America in early 2009’ moment, ‘Fear and uncertainty are at or near peaking, but China is very important to America, 20 times as important to Russia. America cannot effectively fight or punish China without spitting on itself with equal cruelty. Just ask KingJames.”

The reference to “King James” refers to NBA star LeBron James. James, the NBA’s global ambassador, caused controversy by appearing to be adopting Beijing’s propaganda in 2019 by criticizing the general manager of the Houston Rockets franchise. The latter had expressed his support for the Hong Kong protesters in a tweet that was later deleted.

Basically, Bure, who usually deletes his tweets, believed that the Biden administration would have been better off following the example of James, whose position was due to the fact that China is a large market for the National Basketball Association according to critics and human rights advocates.

Follow the lead of the NBA

China is already a kind of factory for many American and leading companies like Apple (AAPL) Tesla (TSLA) General motors (GM) . The country is also home to many raw materials. To measure its weight in the global economy, and the American economy in particular, the closures in some Chinese regions to limit the spread of the Corona virus have disrupted the supply chains of many American companies. Automakers suspended production of some models and closed some factories, driving up car prices.

So Puri fears things will go wrong if tensions between Beijing and Washington continue.

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During an interview on “60 Minutes” that aired on September 18, President Joe Biden said that US forces would defend Taiwan in the event of a Chinese invasion.

China considers Taiwan, with a population of about 23 million, as one of its provinces, which has failed to be reunited with the rest of its territory since the end of the Chinese Civil War in 1949.

However, Biden’s comments come after a major rapprochement between the United States and Taiwan, at a time when relations between Beijing and Washington are at their lowest point in decades.

A bill providing for the first direct military assistance from the United States to Taiwan passed a key stage in Congress on Sept. 14. A few days ago, Washington announced a $1.1 billion arms sale to Taipei. In early August, House Speaker Nancy Pelosi’s visit to Taiwan angered Beijing. Then China launched the most important military maneuvers in its history around the island.

Beijing has put increasing economic, diplomatic and military pressure on Taipei since current Taiwanese President Tsai Ing-wen, of a pro-independence party, came to power in 2016.

On the economic front, China has been pushing in the past few years to build its technology and other industries.

Meanwhile, the United States has restricted its companies from supplying key components to Chinese technology companies such as Huawei.

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