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Corona crash
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It #coronavirus rages through the financial market. What is happening in this parallel world, where trading floors are closed down, trade is stopped regularly and some people go on bargain hunting again?
The coronavirus rages not only through the world, but also through the financial markets. What is happening in this parallel world, where trading floors are closed down, trade is stopped regularly and some people go on bargain hunting again? VPRO Progenlicht takes on the temperature of the global financial markets through videoconferencing with a diverse group of investors, traders and financial analysts, from Beijing to Chicago. People who have a lot to lose, but can often wear it. The questions to these insiders were simple:
The coronavirus rages not only through the world, but also through the financial markets. What is happening in this parallel world, where trading floors are closed down, trade is stopped regularly and some people go on bargain hunting again? VPRO Progenlicht takes on the temperature of the global financial markets through videoconferencing with a diverse group of investors, traders and financial analysts, from Beijing to Chicago. People who have a lot to lose, but can often wear it. The questions to these insiders were simple:
How do you experience the roller coaster that the financial markets are now going through?
How did you get through it?
What have you done?
What have you seen?
And where do you think we're headed?
A look at the back of the corona crash.
First investing, then morality. American Steve Eisman is known as the man who made a fortune speculating against the financial bubble that splashed in 2008. His story was later filmed as The Big Short.
Even now there are investors who make substantial profits, this time from the Corona crisis. Bill Ackman of hedge fund Pershing Square is said to have saved 2.6 billion dollars from his guess that the American corporate loan market would collapse. And now there are funds that are looking for new money to take advantage of the rise in stock market prices that they think is imperent.
One more, in the context of the shaky morality: the Norwegian government investment fund, which likes to “green” on the basis of Norwegian oil revenues. That fund has now bought back more than $3 billion in shares of Shell, because they were so nicely low due to the crisis.
Unsympathetic, while people die daily in the ICs? They are not sensitive to this:
One more, in the context of the shaky morality: the Norwegian government investment fund, which likes to “green” on the basis of Norwegian oil revenues. That fund has now bought back more than $3 billion in shares of Shell, because they were so nicely low due to the crisis.
Unsympathetic, while people die daily in the ICs? They are not sensitive to this:
First investing, then morality.Source: NRC
What will happen economically in China? What does this mean for China as a world power? What will this have for Europe? Can Europe stand up? And what will the economic consequences be for the Netherlands?
These questions and more will be discussed during this interview. It is clear that Europe's solidarity will be tested and order will be under pressure. Italy was already a weak European brother and is now also severely affected by the coronavirus.
“The priority now is to curb the coronavirus and we see what happens to the economy”, De Kort says. However, we would like to know what the consequences will be. Have a look at it in this interview at Vor de Reverend!
Conversation topics
0:24 What worries you most at this moment?
1:29 What is the worst scenario?
5:20 Where are the debts at this moment?
6:15 “The weakest point is, of course, Italy.”
9:56 Can figures already see the economic impact on China?
13:01 What about the production decline in Korea?
16:36 China is going down now, what does this mean for the rest of the world?
18:51 “It would not be surprising if there would be a lot of unrest in China.”
20:56 Now the twofold 'problem wave' is coming to Europe, how does it put pressure on Europe?
24:00 “Now everything is set on that corona story and we'll see what happens to the economy.”
24:14 What will happen to Italy and what should the ECB do?
28:11 “The self-employed are hard, and there are many.”
28:29 How many people will be in trouble in the Netherlands?
30:22 What can the ECB do?
31:53 What should the government do?
33:36 Worst-case scenario: What will happen in Europe?
35:28 Who is the best of this on the world stage?
36:48 What is the positive scenario?
37:31 Could it be that this virus will accelerate the shift of the world order?
41:28 “A crisis does not fall from the sky, but has a history.”
These questions and more will be discussed during this interview. It is clear that Europe's solidarity will be tested and order will be under pressure. Italy was already a weak European brother and is now also severely affected by the coronavirus.
“The priority now is to curb the coronavirus and we see what happens to the economy”, De Kort says. However, we would like to know what the consequences will be. Have a look at it in this interview at Vor de Reverend!
Conversation topics
0:24 What worries you most at this moment?
1:29 What is the worst scenario?
5:20 Where are the debts at this moment?
6:15 “The weakest point is, of course, Italy.”
9:56 Can figures already see the economic impact on China?
13:01 What about the production decline in Korea?
16:36 China is going down now, what does this mean for the rest of the world?
18:51 “It would not be surprising if there would be a lot of unrest in China.”
20:56 Now the twofold 'problem wave' is coming to Europe, how does it put pressure on Europe?
24:00 “Now everything is set on that corona story and we'll see what happens to the economy.”
24:14 What will happen to Italy and what should the ECB do?
28:11 “The self-employed are hard, and there are many.”
28:29 How many people will be in trouble in the Netherlands?
30:22 What can the ECB do?
31:53 What should the government do?
33:36 Worst-case scenario: What will happen in Europe?
35:28 Who is the best of this on the world stage?
36:48 What is the positive scenario?
37:31 Could it be that this virus will accelerate the shift of the world order?
41:28 “A crisis does not fall from the sky, but has a history.”
Suppose one day the dollar falls.Are we living on a bubble? Can the heavily indebted American economy collapse and drag us Europeans into free fall? Are the days of world currency dollar counted? And is a repetition of the crisis years thirties really so unthinkable?Suppose one day the dollar falls. In a scenario that unrolls in 24 hours, truth and fiction overlap each other. At nine o'clock in the morning, a trader in Singapore is ordered to sell a large amount of dollars, triggering an unprecedented downfall of the dollar. Hour after hour, we see how the world reacts to that. Chinese are preparing for a possible war and in Amsterdam, a woman can only pay her taxi with three packs of cigarettes.
Per second, the United States is getting $18,000 deeper into the red figures. Every day, government, business and private individuals now borrow about $3 billion (!) from the rest of the world. When the euro was launched in 2002, a dollar was worth 1.13 euro; in February/March 2005 the low threshold of 0.75 euro cents was temporarily passed. Reason for analysts like Stephen Roach, chief economist at MorganStanley, to sound the alarm bell: the ever-increasing shortages in America are a time bomb under today's global economy. Other experts are less firm but have to admit it: the era of the dollar as a world reserve currency is likely to come to an end in ten years. Just as the dollar once took over the relay test from the British pound, so will the dollar standard turn into a new standard. In any case, the current currency system, which seems to be designed to allow Americans to consume and invest endlessly, has had the best time. Because it is hardly conceivable that Asia - especially China's exploding economy - will continue to finance Uncle Sam's deficits for days.
But what exactly happens when that ticking time bomb explodes? Counterlicht invited Maarten Schinkel, financial-economic editor of NRC Handelsblad, to think aloud about (the consequences of) such a monetary crisis. A sudden spike in the dollar's day rate chart can be the first stone in a still calm sea. But the tidal wave that emerges from it threatens the globalised and integrated global economy. After all, were these international economic relations as calm as they seemed? Was everything so balanced? The connoisseurs know better. The world is massively bursting its head in the sand. “It's going well while it's still going well”.
In 'The Day that the Dollar falls', director Roel van Broekhoven combines fiction and reality. The staged fall of the dollar is commented by bank economists Stephen Roach (New York) and Andy Xie (Hong Kong), top banker and former treasurer Cees Maas, defense specialist Rob de Wijk and GroenLinks MP Kees Vendrik. In scenes and news clips we see how the panic of the financial world spans into everyday life. With the cooperation of Twan Huys (New York) and newsreader Aldith Hunkar.
Per second, the United States is getting $18,000 deeper into the red figures. Every day, government, business and private individuals now borrow about $3 billion (!) from the rest of the world. When the euro was launched in 2002, a dollar was worth 1.13 euro; in February/March 2005 the low threshold of 0.75 euro cents was temporarily passed. Reason for analysts like Stephen Roach, chief economist at MorganStanley, to sound the alarm bell: the ever-increasing shortages in America are a time bomb under today's global economy. Other experts are less firm but have to admit it: the era of the dollar as a world reserve currency is likely to come to an end in ten years. Just as the dollar once took over the relay test from the British pound, so will the dollar standard turn into a new standard. In any case, the current currency system, which seems to be designed to allow Americans to consume and invest endlessly, has had the best time. Because it is hardly conceivable that Asia - especially China's exploding economy - will continue to finance Uncle Sam's deficits for days.
But what exactly happens when that ticking time bomb explodes? Counterlicht invited Maarten Schinkel, financial-economic editor of NRC Handelsblad, to think aloud about (the consequences of) such a monetary crisis. A sudden spike in the dollar's day rate chart can be the first stone in a still calm sea. But the tidal wave that emerges from it threatens the globalised and integrated global economy. After all, were these international economic relations as calm as they seemed? Was everything so balanced? The connoisseurs know better. The world is massively bursting its head in the sand. “It's going well while it's still going well”.
In 'The Day that the Dollar falls', director Roel van Broekhoven combines fiction and reality. The staged fall of the dollar is commented by bank economists Stephen Roach (New York) and Andy Xie (Hong Kong), top banker and former treasurer Cees Maas, defense specialist Rob de Wijk and GroenLinks MP Kees Vendrik. In scenes and news clips we see how the panic of the financial world spans into everyday life. With the cooperation of Twan Huys (New York) and newsreader Aldith Hunkar.
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