Toxic Assets = assets quality is bad (like MBS, CDOs, CLOs, CDS) = it is like an asset of USD1.00 only worth USD0.20.
US is trying to sell the toxic assets to another Special Vehicle, to restructure the Toxic Assets, hoping to get more values from what it is worth now.
Meanwhile, world trade is shrinking as seen above. So is employment. Look at the Baltic Dry Index, 11,ooo to 660, then rebounded to 2200 and now is down back to 1600, not so encouraging though.
iCapital's MD (Mr Tan Teng Boo) says that the world economy is going to have a V shape rebound, referring to the improve retail sales figures in US over the last few months.
While OSK-UOB Asset Management's CEO says that we have yet to see the worst, until then, recovery is not in sight.
I said, US and Europe is going for a L shape, stagflation, stagnant and high inflation, principally due to printing of new money, to buy up toxic assets and bailouts financial elites. However, there are lots of opportunities in Asia.
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