{"id":17887,"date":"2016-02-17T11:59:39","date_gmt":"2016-02-17T16:59:39","guid":{"rendered":"http:\/\/olduvai.ca\/?p=17887"},"modified":"2016-02-17T12:00:06","modified_gmt":"2016-02-17T17:00:06","slug":"the-banking-turmoil-spreads-massive-banking-crisis-brewing-in-singapore","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=17887","title":{"rendered":"The Banking Turmoil Spreads\u2014-Massive Banking Crisis Brewing In Singapore"},"content":{"rendered":"<header>\n<h3 class=\"entry-title\"><a href=\"http:\/\/davidstockmanscontracorner.com\/the-banking-turmoil-spreads-massive-banking-crisis-brewing-in-singapore\/\" target=\"_blank\">The Banking Turmoil Spreads\u2014-Massive Banking Crisis Brewing In Singapore<\/a><\/h3>\n<\/header>\n<div class=\"entry-content\">\n<div class=\"ssba ssba-wrap\"><strong><em>By Singapore Business Review<\/em><\/strong><\/div>\n<div class=\"pf-content\">\n<p>The three biggest banks are losing capital.<\/p>\n<p>A crisis of staggering proportions is looming in China, and tiny Singapore will be caught right in the middle of the storm once the disaster finally erupts.<\/p>\n<p>Speaking at the annual Barron\u2019s roundtable, Swiss billionaire investor Felix Zulauf warned that Singapore\u2019s largest banks are at risk of massive capital outflows if the Chinese economy experiences a hard landing, which he expects will happen this year.<\/p>\n<p>\u201cWe are in a down cycle that will end with crisis and calamity. China in today\u2019s cycle is what US housing was during the financial crisis in 2008,\u201d Zulauf warned.<\/p>\n<p>Zulauf warned that capital outflows in China will continue, prompting regulators to devalue the yuan by as much as 15% to 20% within the year. When this happens, Asian economies which are heavily dependent on China\u2014particularly Singapore\u2014will suffer because Chinese corporates will cut their imports even more, while indebted Chinese companies will be placed at greater risk of default.<\/p>\n<p>\u201cI expect the situation the deteriorate to a point where we will witness a banking crisis in Asia that will hit Singapore and Hong Kong particularly hard,\u201d Zulauf said.<\/p>\n<p>\u201cIt is conceivable that Singapore, which has attracted a lot of foreign capital over the years because of its image as a strong-currency state, will be extremely exposed to the situation in China. Singapore\u2019s banking-sector loans have grown dramatically in the past five or six years. Singapore is now losing capital, which means the banking industry is losing deposits,\u201d Zulauf said.<\/p>\n<p>He said that such a situation will cause carry trades to go awry, which will result in steep losses for heavily-leveraged traders.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Banking Turmoil Spreads\u2014-Massive Banking Crisis Brewing In Singapore By Singapore Business Review The three biggest banks are losing capital. A crisis of staggering proportions is looming in China, and tiny Singapore will be caught right in the middle of the storm once the disaster finally erupts. Speaking at the annual Barron\u2019s roundtable, Swiss billionaire [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[34,5038,63,109,130,5979,2120,195,200,12445,403,4212,12444,12446],"class_list":["post-17887","post","type-post","status-publish","format-standard","hentry","category-economics","tag-asia","tag-banking-industry","tag-banks","tag-capital","tag-china","tag-contracorner","tag-david-stockman","tag-debt","tag-default","tag-felix-zulauf","tag-hong-kong","tag-singapore","tag-singapore-business-review","tag-us-housing"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17887","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17887"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17887\/revisions"}],"predecessor-version":[{"id":17889,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17887\/revisions\/17889"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17887"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17887"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17887"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}