"The investor of "The Big Short" fame, who recently pivoted from running a hedge fund to writing on Substack, published a post early Monday saying the "game just changed" in the mid to long term, and "markets are not pricing in all that may come of this weekend's events." "This is a paradigm shift despite the markets yawning," he later wrote on X."
"The seizure was a "shot across China's bow," Burry wrote, pointing to billions of dollars in loans that China has made to Venezuela under its Belt and Road Initiative (BRI), which were collateralized using future oil output that is "now in US hands." The investor, who shot to fame after his prescient bet against the mid-2000s housing bubble was featured in the book and movie "The Big Short," wrote that China may now have a "blueprint" for how to take control of Taiwan,"
Markets are not pricing mid- to long-term consequences of the US seizure of Venezuela, and the game for global energy has changed. The US captured President Nicolás Maduro and assumed control of Venezuelan oil assets, while benchmark oil and stock moves remained muted. Billions in China-backed loans under the Belt and Road Initiative were collateralized with future Venezuelan oil and are now in US hands. The event increases geopolitical leverage for the United States and raises sanction and escalation risk for China. Chinese equities and major firms face greater volatility. The US economy stands to benefit while China, Russia, Canada, and Mexico may lose ground.
Read at Business Insider
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