Some time ago, the news of the thunderstorm of Silicon Valley Bank in the United States has attracted a lot of attention in the international community. You must know that Silicon Valley Bank has always been relatively conservative in investment. Once the large-scale withdrawal is caused, more banks will usher in bankruptcy. Although U.S. Treasury Secretary Yellen said that the economic crisis in 2008 will not be repeated, because the U.S. banking industry has undergone reforms, and the stability and security have improved a lot, it still cannot stop people from seeing the failure of Silicon Valley Bank as a It is the first domino that shakes the financial circle. However, things were very similar to what people expected. Subsequently, many banks in the United States went bankrupt, and even this "financial tsunami" also hit Europe.
Recently, some media reported that in order to avoid the current crisis of Credit Suisse and cause irreversible economic shocks to the country, the Swiss government decided to end it. With their help, Credit Suisse will be acquired by UBS. It is understood that Credit Suisse was established in 1856 and reached its peak in 2007. In the past ten years, the market value of Credit Suisse has shrunk by 98%, and it is facing a huge crisis. The acquisition agreement means that a company with a history of 166 years The organization ushered in the moment of closing. It is worth noting that Credit Suisse, as the second largest banking group in Switzerland, has businesses in more than 50 countries around the world. The impact of the collapse of Credit Suisse is much more serious than the collapse of Silicon Valley Bank. welcome.
But it is a little strange that the purchase price of Credit Suisse is less than half of the market value at the close of last week. The merger of the famous banking giants will be quite a crisis for the Swiss government. After all, the economy of the entire country depends on one company, which is definitely a risky bet. This problem is too difficult. Perhaps the choice made to fill the pit will eventually become a new pit. So what is the Swiss approach? Topping off? This is hard to say, because different stages have different impacts. In the short term, it has indeed prevented a major shock from happening, but in the long run, it has planted a big security risk.
According to the agreement, for Credit Suisse's huge debt, UBS needs to repay the debt with the Swiss government, up to 5 billion francs. Once UBS is unable to repay, it means that the two Swiss giants have a thunderstorm together, and the losses suffered by the European financial community can be reduced. It's hard to predict. It is not difficult to see that when the West faces the difficulties of the banking industry, it basically adopts the method of tearing down the east wall and filling the west wall. It just postpones the problem forcibly and does not solve the problem at all. If the weak places are not reinforced, it will be a flood. When it hits, it will still face collapse. In fact, for this matter, China has given a simple method. The deputy governor of the central bank said that China will continue to open up to the outside world and provide more choices for global assets. Simply put, it is to welcome capital from all countries to look at China , because as China's economy recovers and further opens up, it will show stronger stability. (drink boiled water)