/biz/ - Business & Finance

Great interview with Kyle Bass on CNBC this afternoon. He is the man when it comes to the short China strategy:

He notes that China is running a deficit and losing control of their currency. They've failed at propping their currency up.

The people of HK have lost trust in their own leadership and police and to consider what happens with a situation like that.

>>15096154
>will china retaliate? more importantly, how will the market react?


They have plenty of ways to retaliate and this could get real ugly real fast:

Just one simple example is they might pressure consumers against (or ban ) iPhone sales in China. AAPL is still 50% an iPhone company with sales already slowing. The stock will drop fast when the price is valued at 0% growth.

But the big weapon they could use is Treasuries.
China is the largest foreign lender to the US.
They could just dump billions in treasuries to retaliate which would cause a flash crash.

Take a look at the flash crash of Aug 2015.
At the time China was unloading billions in treasuries to stabilize their currency.

Chinese forces building on the HK border