THE TRUMP FOREIGN POLICY OF CONTAINMENT MAY CREATE A TIDAL WAVE OF COLLATERAL DAMAGE TO MACAU ECONOMY. THE MACAU ECONOMY SUPER EPIC BUBBLE STARTED IN 2001 AND COLLAPSED IN 2014. THE NEW CASINOS CREATED SURPLUS WEALTH OF $ 4.4 BILLION THAT NOW HAS DISAPPEARED TO LESS THAN 2.1 BILLION DOLLARS.
THE COLLAPSE OFTHE MACAU STOCK MARKET WAS BASED ON THREE MAJOR FACTORS: (1) THE CHINESE COMMUNIST PARTY CRACKDOWN ON THE CHINESE CORRUPTION; (2) THE VIP HIGH ROLLER USING THE CASINOS TO CIRCUMVENT CURRENCY RESTRICTIONS; (3) THE BUSINESS DOWNWAVE IN THE CHINESE ECONOMY AND EXCESSIVE HIGH VALUATIONS OF CASINO STOCKS.
THE NEW FACTOR THAT MAY CREATE A NEW TRIGGER OF PANIC IS THE COMING NORTH KOREAN SHOWDOWN. THE NORTH KOREAN SHOWDOWN WILL BE BE MET BY THE GREAT AMERICAN FLEET. THE GREAT AMERICAN NAVAL FLEET WILL CHALLENGE AND CONTAIN NORTH KOREAN NUCLEAR PROGRAM. HOW WILL THE NORTH KOREAN GOVERNMENT REACT TO THE NEW AMERICAN PRESSURE?
NORTH KOREAN MAY STRIKE OUT AGAINST THE AMERICAN CONTAINMENT. THE FALLOUT WOULD HIT THE MAJOR ASIAN ECONOMIES. THE MACAU ECONOMY WOULD PLUNGE THE FIRST QUARTER BY 24.5% AND SECOND QUARTER WOULD BE 26.4%.
THE CASINO STOCKS WOULD PLUNGE TO RECORD LOWS. THE AMERICAN STOCKS WOULD BE HIGHLY EXPOSED TO A DOWNWARD PRESSURE OF THEIR MACAU HOLDINGS.
THE SHORT IN MACAU STOCKS IS NOW AT AN ALL TIME LOW AND COULD BE THE KEY TO PROTECT LONG POSITIONS IN MACAU. HOWEVER, THE MAJOR LAS VEGAS CORPORATIONS WOULD TAKE A MAJOR LOSS ON THE THEIR FOREIGN HOLDINGS. REMEMBER, LAS VEGAS IS THE UNOFFICIAL CAPITAL OF THE UNITED STATES.
Posts
No comments:
Post a Comment