How to Rob a Bank Step 3: Stake out the targets
Welcome to our special series highlighting snapshots of our Bank-Robbing guidebook: the Asian Capital Development (ACD) Special Report.
For each day this week, we are taking a look at the different steps you need to take to rob the big Asian banks legally. Download the full report here.
Now you know how governments in Asia use debt-derived money to grow their economies.
They inject this funding towards specific areas in the economy, which are called “hot spots”.
They grow faster and become artificially more competitive. But what’s the effect of state-sanctioned financing? Well, it manipulates the credit (debt) cycle.
The speed of money circulating in an economy is called velocity. In many Asian economies, governments (not the free-market) direct money into “strategic sectors”, making these industries high-velocity. Debt cycles are intensified here.
There are plenty of stories of clever investors who made record profits investing in “hot” real estate sectors such as Thailand, before the Asian Crisis of 1997.
These people staked out their target, went in and got out at the right time.
For many however, the reality was that those who invested in Thailand’s real estate, or other “hot spots”, went down with their sinking stocks.
They did not plan their robbery well and ended up in investment prison.
Passive investing and playing the long game doesn’t work with our model.
You need to be active and when staking out your initial targets, you must ascertain if certain companies are using credit efficiently.
The perfect heist includes a fast entry, and after a year or so, a swift exit.
Much like Thailand’s boom and financial meltdown, right now, Asia is experiencing another period of excessive borrowing.
Impending doom is near. Bubbles are forming all over Asian markets.
Soon they will burst, one after the other. A ripple of debt and non-performing loans will sweep the region.
The winners are those who understand the debt cycle, able to stay one step ahead of the trend.
Our Special Report is all about understanding this debt cycle.
So download it here to find out how to get on the money train and when to jump off before it crashes.