For the third time, China and the United States joined forces to rescue the market!European and Amer

Mondo Finance Updated on 2024-01-29

Regardless of whether you pay attention to the changes in the international financial environment or not, you will definitely be shocked by the news of swiping the screen in the past few daysThree banks in the United States have failed in succession, and one of the largest banks in Europe has been acquired.

Many have likened this to the subprime mortgage crisis of 2008, but in fact it is likely that it was a much more serious financial crisis that, if not handled properly, could eventually lead to a global depression that could be similar to the period from 1929 to 1939.

In order to avoid such a bad result, Europe and the United States have come to the rescueU.S. Finance** also called for China to be involved.

Last weekend, China's central bank unexpectedly announced the news of the RRR cut, has the third joint rescue of China and the United States begun?

Let's first take a look at what the U.S. bailout policy includes in the context of the Fed's interest rate hikes

In the case of the collapse of Silicon Valley Bank, the Fed originally wanted to ignore it and let the deposit insurance company handle it.

Soon, however, U.S. officials discovered that the risk of a crisis was spreadingIn the end, it was decided to give all depositors a guarantee, so all SVB customers were able to withdraw their deposits.

A number of large Wall Street banks have poured a total of $30 billion into First Republic Bank in the hope of easing the bank's liquidity.

But even then, it didn't seem enough, and after a brief ** last Friday, 1st Republic Bank **32 again8%, which continued to fall sharply on Monday, extending the decline to 47%. From March 3 to now, the bank's share price has fallen by 9 percent.

Some economists in the United States believe thatThere are currently more than 100 banks like Silicon Valley, and if the Fed doesn't completely address the next step, the number of failed banks will be even higher.

Europe, mainly in the Swiss relief of Credit Suisse.

Credit Suisse's problems have not been eliminated, but the SNB has provided 50 billion Swiss francs to the bank in the event of a recent collapse of Silicon Valley Bank.

Next, although UBS and Credit Suisse were reluctant, the situation forced them to finally reach an agreementUBS acquires Luckin.

But don't let that lead to the assumption that Europe's bailout has been successful, perhaps this is the beginning of a series of bad news.

Because before the 2008 subprime mortgage crisis,Bear Stearns, as the fifth largest investment bank at the time, was also acquired when it went bankruptAt that time, ** also thought that the risk was effectively controlled within a small range, but I didn't think that soon after thatLehman's mini-detonation further detonated the global financial turmoil.

And now that Credit Suisse has been acquired, more than $17 billion of bonds have been cleared overnight, which is also likely to lead to a ferocious sell-off in the entire bond market.

Many people are wondering if China will participate in the bailout

After the subprime mortgage crisis in the United States broke out in 2008, the United States had to carry out rounds of quantitative easing, and China also used 4 trillion yuan to stimulate the economy at that time, so many people regarded this as the United States and China to resist the subprime mortgage crisisThe first joint bailout.

The outbreak of the new crown epidemic in 2020 is the second time in the world, because both China and the United States have been severely affected by the epidemic and must take corresponding measures to stimulate the economy.

Now, after the successive actions of Europe and the United States, the People's Bank of China suddenly announced a comprehensive RRR cut of 025 percentage points, is this the third time that we have joined forces to save the market?

In fact, including the first two so-called joint bailouts, they are just taken for granted, that is, in order to deal with the economic crisis, each country has taken action from its own perspective and introduced corresponding measures.

This time, China's RRR cut continued the old way of thinking, putting an appropriate amount of liquidity into the market to stimulate economic recovery.

As a matter of course, economic fluctuations overseas will have an impact on us, but what we do for ourselves is the most important thing

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