What’s scarier than Trump’s tariffs

🚨 What’s scarier than Trump’s tariffs… is what’s happening in emerging markets right now

Recently, the market collapsed due to Trump’s remarks. In particular, the cryptocurrency market was shocked.
The reason is simple: I used too much leverage, which is debt, to invest.

The volatile crypto market has fallen more than 20% with a number of investors whose accounts have been liquidated by margin calls.
After all, for investors, the nature of this situation is leverage.

Now that margin debt is soaring to the highest level ever and debt-to-debt trend… the market can’t handle the unexpected bad news, the Black Swan event.

However, if the liquidation show in the cryptocurrency market was due to individuals’ “debt investment,” now the next risk is on companies.

📍 What’s happening in emerging markets right now

Brazilian chemical company Braskem, Turkish industrial conglomerate Sinner Group… Bonds from companies that are well known by their names are plummeting.

Brazilian corporate bonds lost an average of 5.3% in just two weeks, with some bonds plunging 20 cents in two days. Turkish companies are battling a killer interest rate of 40.5%, while borrowing costs are at their highest level in 20 years.

🔍 Why is this important?

We were under zero interest rates just four years ago, and at that time, companies raised all-time debt by combining this low interest rate trend with the government’s terrifying subsidiary policy.

And now the time is coming for companies with huge debts to return their borrowings at the highest interest rates in 20 years.

📊 The United States is no exception… why it is more dangerous now

Big corporate bankruptcies in the U.S. are soaring to the highest level in 15 years since 2010. The biggest problem is that the Fed does not have much room to respond in the event of a credit crisis. Interest rates are around 4.5%, so there is not much room to fall and there is an inflation risk, making it difficult to aggressively release money.

💡 The current insolvency of emerging bond markets is not just an event, but an early warning that companies’ leverage warning signals, or global liquidity, are deteriorating.

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