I am surprised by his response at 10:05 - (paraphrase) "Japanese culture is conservative... other than a LITTLE burst in the 80s, Japanese are not used to aggressive financing..." A LITTLE burst that cost Japan 30+ years of economic stagnation.. He looked like an unwilling or unprepared guest btw.
6:35 He obviously didn't appreciate Yvonne Man's question on the Evergrande catastrophe. Collateral from this company is likely in unfinished apartment blocks in Tier 3 cities, and as valuable as Titanic's insurers being able to salvage the wreck.
@@williamc4221 They were a zombie company, building apartment complexes paid for by future sales: All they had for collateral was bare land and unfinished buildings.
@@raywest3834 would be very stupid to accept land or unfinished building as collateral, yes. these developers however have very lucractive property management businesses on condos already sold (think high HOA fees with little services). suspecting that's what they confiscate from the defaults, and continues to collect the fees for as long as the govt allows them to.
@@titusp9488 In first-world countries, Marks' Oaktree is very good at securing its loans, but in dealing with Communist China, they found out that the law was whatever the CCP said it was, and Evergrande, now essentially nationalized, ignored Oaktree's collateral, and sold the land in Hong Kong, know as Project Castle, to a government backed developer.
He says the thesis in Japan is that ultralow rates in Japan will persist.. but also that they make no macro top down bets… this guy double talks better than anyone in the business
He seems very reluctant to say more than vague generalities on China. She asked him for his opinion a few times, and he didn't really give much except vague strangeness.
@@ChrisE1415 Yes! Would have loved to hear more about it. You just cannot say really nice things about chinese economy now but Im so glad that he pointed out the fact that they HAVE been handed the keys to defaulted properties. 👍 Would love to know more of their exposure and deals in China
And what would he tell investors he represents when China will retaliate against him? That’s why he’s so successful- he won’t allow his mouth to ruins those who trust their money with him.
@@hansdoreen No, he doesn't. He is a realist, humble, smart man :-). The next generation of investors are going to miss the class of Marks, Buffett, Munger et al....truly smart yet extremely grounded and genuine folks in a space marred with scams and frauds aka the street
The defining characteristic of autocratic regimes is their insistence on absolute supremacy. Throughout more than two thousand years of Chinese history, during times of strong imperial power, subjects often took pride in the idea that “All under heaven belongs to the emperor; all within the borders are his subjects.” Historically, those officials and generals who expanded the empire’s territories were frequently glorified as national heroes. In contrast, the capitalist revolutions in the Western world aimed to oppose autocracy, rejecting the return of feudal autocratic systems under leaders like Napoleon, Hitler, and the Soviet Union. These revolutions gradually established and refined systems of democracy and freedom. It is within such systems that many small Western European nations have managed to maintain democracy, liberty, and independent prosperity. This is also why the Western world remains wary of China today and seeks to limit its use of Western technological advancements. The development path promoted by the Chinese government, often described as a “Chinese model,” is essentially a continuation of state monopoly and autocracy. Concepts like the “rise of China,” the “Chinese Dream,” and the “Belt and Road Initiative” are, in this new context, forms of territorial expansion under different guises. Those who engage in benign propaganda for the Chinese Communist Party (CCP) should ask themselves: Do you truly believe that a stronger CCP will abandon its pursuit of supremacy and allow Western nations to continue their democratic and free systems? By observing how the CCP’s attitude toward Taiwan, Hong Kong, Japan, and other South China Sea nations has hardened with its growing power, one can clearly understand why the Western world today is so vigilant and opposed to the CCP.
If they're investing in distressed properties in China, or loans backed by properties, hopefully they actually visit the properties to evaluate them. Most of these are tofu-dreg construction which will never be anything but ruins.
@@leeliu6867 Yep, in 2008 there were some foreclosed houses that were junk, but most were good. I know because I was there, passed up a few junkers and found a good bargain. The difference is that the US had building standards that are sometimes, but not regularly bribed away. And the overbuilding in even the hottest markets wasn't anywhere near what's happened in China. It's not a market I'd want to invest in.
What are you talking about? This is how lending money works. You borrow money, you collaterize something for it, you pay back the loan with interest, and if you can't, the person who lent you the money will take control of the collateral.
It's not a plot. The former Chinese owner of Inter Milan coudn't repay their loan. If you can't repay your loan on something, then you don't really own that thing you bought with the loan.
Wow, what a legend is Howard Marks! Taking control of a sports club of the likes of Inter Milan, because a debtor defaulted on their repayment
That is how lending money works, yes.
vastly overvalue FC, that itself is saddled with 1B EUR in debt, a payroll of 200M EUR per year, and a coach that wanting out.
Italian clubs seem to be struggling to compete in Europe...Inter came calling & Oaktree took the opportunity...good deal
I am surprised by his response at 10:05 - (paraphrase) "Japanese culture is conservative... other than a LITTLE burst in the 80s, Japanese are not used to aggressive financing..."
A LITTLE burst that cost Japan 30+ years of economic stagnation..
He looked like an unwilling or unprepared guest btw.
6:35 He obviously didn't appreciate Yvonne Man's question on the Evergrande catastrophe.
Collateral from this company is likely in unfinished apartment blocks in Tier 3 cities, and as valuable as Titanic's insurers being able to salvage the wreck.
You can't possibly know what their collateral was.
@@williamc4221 They were a zombie company, building apartment complexes paid for by future sales: All they had for collateral was bare land and unfinished buildings.
@@raywest3834 would be very stupid to accept land or unfinished building as collateral, yes. these developers however have very lucractive property management businesses on condos already sold (think high HOA fees with little services). suspecting that's what they confiscate from the defaults, and continues to collect the fees for as long as the govt allows them to.
Yeah you think Howard marks don’t know what collateral is and should be😂😂😂
@@titusp9488 In first-world countries, Marks' Oaktree is very good at securing its loans, but in dealing with Communist China, they found out that the law was whatever the CCP said it was, and Evergrande, now essentially nationalized, ignored Oaktree's collateral, and sold the land in Hong Kong, know as Project Castle, to a government backed developer.
He says the thesis in Japan is that ultralow rates in Japan will persist.. but also that they make no macro top down bets… this guy double talks better than anyone in the business
he has also said that he doesnt do macro interest rate forecasts before proceeding to give one
Sometimes you have to listen to this sort of nonsense so that you understand just how insane the USA is. Well done Bloomberg.
What are you talking about 😂😂😂
Sound advice
Reluctant speaker who is forced to tell.
He seems very reluctant to say more than vague generalities on China. She asked him for his opinion a few times, and he didn't really give much except vague strangeness.
Could harm him / block him doing business there. What good there is for him to insult the ccp?
@@patrickheiskanen2610 Wasn't criticizing just pointing out
@@ChrisE1415 Yes! Would have loved to hear more about it. You just cannot say really nice things about chinese economy now but Im so glad that he pointed out the fact that they HAVE been handed the keys to defaulted properties. 👍 Would love to know more of their exposure and deals in China
And what would he tell investors he represents when China will retaliate against him? That’s why he’s so successful- he won’t allow his mouth to ruins those who trust their money with him.
Howard Marks is the new EF Hutton
People listen when he talks!
Howard Marks is a wise investor generous with his knowledge, few asset is so bad that a overly cheap price doesn't make it attractive.
Legend
I agree. But that doesn't mean he shits rainbow.
@@hansdoreen No, he doesn't. He is a realist, humble, smart man :-). The next generation of investors are going to miss the class of Marks, Buffett, Munger et al....truly smart yet extremely grounded and genuine folks in a space marred with scams and frauds aka the street
Where could read his memos ?
Oaktree website
Also can listen to them via his podcasts
Really ? ... really, America, so great????
I was thinking the same. Is the economy of the US good !?
🔥
Legal system in the US?? Ask Julian Assange and Snowden pls.
We’re a banana republic
If you listened to him, you lost tons of money.
He looks kinda rough like he lost a ton of money or something
Well, he did have cancer last year
Howard got a finger in China 😂😂
The defining characteristic of autocratic regimes is their insistence on absolute supremacy. Throughout more than two thousand years of Chinese history, during times of strong imperial power, subjects often took pride in the idea that “All under heaven belongs to the emperor; all within the borders are his subjects.” Historically, those officials and generals who expanded the empire’s territories were frequently glorified as national heroes.
In contrast, the capitalist revolutions in the Western world aimed to oppose autocracy, rejecting the return of feudal autocratic systems under leaders like Napoleon, Hitler, and the Soviet Union. These revolutions gradually established and refined systems of democracy and freedom. It is within such systems that many small Western European nations have managed to maintain democracy, liberty, and independent prosperity. This is also why the Western world remains wary of China today and seeks to limit its use of Western technological advancements.
The development path promoted by the Chinese government, often described as a “Chinese model,” is essentially a continuation of state monopoly and autocracy. Concepts like the “rise of China,” the “Chinese Dream,” and the “Belt and Road Initiative” are, in this new context, forms of territorial expansion under different guises.
Those who engage in benign propaganda for the Chinese Communist Party (CCP) should ask themselves: Do you truly believe that a stronger CCP will abandon its pursuit of supremacy and allow Western nations to continue their democratic and free systems? By observing how the CCP’s attitude toward Taiwan, Hong Kong, Japan, and other South China Sea nations has hardened with its growing power, one can clearly understand why the Western world today is so vigilant and opposed to the CCP.
Kyle Bass must be so content that Chinese real estate blew up and investors like Howard lost money helping them.
👏👏👏👏👏🇨🇳✌️
If they're investing in distressed properties in China, or loans backed by properties, hopefully they actually visit the properties to evaluate them. Most of these are tofu-dreg construction which will never be anything but ruins.
Lol same way it happens in the usa 2008
@@leeliu6867 Yep, in 2008 there were some foreclosed houses that were junk, but most were good. I know because I was there, passed up a few junkers and found a good bargain. The difference is that the US had building standards that are sometimes, but not regularly bribed away. And the overbuilding in even the hottest markets wasn't anywhere near what's happened in China. It's not a market I'd want to invest in.
@@leeliu6867 agree
He's a bit long in the tooth
Read the Bible for ultimate answers.
Yes, in Proverbs I believe it says buy Microsoft under $420 a share.
what a joker getting paid millions to give that sort of advice
China Hustle….
him and Ray Dalio got caught with their hands in the China cookie jar........
Who's going to borrow money from him, bc he always comes up with the plot to steal their assets.
What are you talking about? This is how lending money works. You borrow money, you collaterize something for it, you pay back the loan with interest, and if you can't, the person who lent you the money will take control of the collateral.
@@Cos_Why_Not You seem somewhat naive, his plots are actually much more sinister.. I'm surprised they haven't yet put him behind bars.
It's not a plot. The former Chinese owner of Inter Milan coudn't repay their loan. If you can't repay your loan on something, then you don't really own that thing you bought with the loan.
Also on the collateral point that the other mentioned, the collateral had already been agreed upon as a majority stake when the loan was made.
I'm a 19 year old who only started trading recently.... But I'm failing��... I really aspire to be profitable like you👖