Dan Oliver, Founder of Myrmikan Capital is one of my favorite guests and an expert on the history of markets and credit. In his latest letter (posted below) he shares a number of factors that he believes are playing out in the credit cycle globally. Here are some of this main points.
- The credit cycle peaked along with the Chinese markets in mid 2015.
- The Chinese government continues to print money to keep GDP high but the private sector is not playing along.
- A Chinese businessman worth an estimated $14 billion recently defaulted on company debt worth $14.4 million citing “tight cash flows”.
- The Chinese bubble is going to pop and this will severely impact global markets.
Click here to download the recent Myrmikan letter where Dan discusses the topics above.