I'm so happy that the BAYFOR meme has finally caught on at this forum.
China ran into the same problems Japan did in the late 1980s early 1990s. Most of their infrastructure boom had already ended and they had huge amounts of capital to invest while a lot of their construction companies were idle. So they basically started all sorts of loan schemes for infrastructure construction basically everywhere they could.We can see this most evidently in our attitude towards BRI. China has been successfully coupling itself to smaller economies, providing infrastructure and capital for lesser-developed nations, and broadly enhancing its global prestige in the process. Instead of acknowledging this fact and coming up with a better alternative for these nations, we decried it as "debt trap diplomacy" and "neocolonialism," making CN out to be an untrustworthy, predatory entity.
No. SVB assets to deposits ratio was about 1. So their assets can cover their deposits.
The problem is that it will take time to convert these assets to hard cash. And that's what's the problem here. While the regulators try and sell all these assets, all these startup companies need access to their money now (not a year/s later), otherwise they will have to close shop or go to fundraise from their investors again..
Exactly, even if by some miracle they did manage to scrounge up enough money to pay everyone back, it'll take months to even a year to sort this out. Do most start ups have that long, not least if the majority of their workers are on H1-B?Startups will die if they don't get their cash within a few months though.
Time for Chinese tech and biotech companies to start poaching talent and IP. This is, after all, how a free market works right? Or are the anglos gonna cry when faced with competition?I heard that apparently 3/4 of biotech IPOs were banking with SVB. If true then that already sounds like a train wreck for drug development in the short term. Rather unfortunate.
you’ll see now how unstable western liberal democracies really are, absent a proper social security system. America only functions from the loot and plunder of the rest of the world, typical of feudal societies.
The stunning part here is the sheer brain power and intellectual resources and ‘soft power’ that China has brought into play to outwit the US. The US has at least 30 military bases in West Asia — five in Saudi Arabia alone — but it has lost the mantle of leadership. Come to think of it, Saudi Arabia, Iran and China made their landmark announcement on the very same day Xi Jinping got elected for a third term as president.
What we are seeing is a new China under the leadership of Xi Jinping trotting over the high knoll. Yet, it is adopting a self-effacing posture claiming no laurels for itself. There is no sign of the ‘Middle Kingdom syndrome,’ which the US propagandists had warned against.
On the contrary, for the world audience — especially countries like India or Vietnam, Turkey, Brazil or South Africa — China has presented a salutary example of how a democratised multipolar world can work in future — how it is possible to anchor big power diplomacy on consensual, conciliatory politics, trade and interdependence and advance a ‘win-win’ outcome.