Warning significance of Boeings crisis: a cushion is needed in case of a black swan

category:Finance
 Warning significance of Boeings crisis: a cushion is needed in case of a black swan


Shareholders basically dont have to pay their own capital, but use the upstream and downstream money to run a company, and most of the money they earn is divided up. As long as the interest bearing liabilities are controlled and the upstream and downstream funds can be used stably, this wonderful business model can work, but the black swan event makes this precondition no longer exist. No matter how strong the industry status, as long as the ultimate leverage ratio is too high, it is easy to become the victim of external shocks.

All the financial crisis and economic crisis first hit the highly leveraged companies, industries or fields. The crisis in 2008 caused the financial sector tsunami and many family bankruptcies in the United States, because the leverage ratio of the financial sector and family sector was too high, and the real enterprises did not have a major crisis. At present, the leverage ratio of the U.S. financial sector is under control, and the macro leverage ratio (corporate debt / GDP) of non-financial enterprises is not high, only 75%, lower than 155% of China, 100% of Japan, but higher than 55.5% of Germany. This is also the reason why the U. But from the micro level, there are some enterprises whose finance is too radical and only reserves cash according to the routine, which is very fragile when black swan or systemic risk comes. If U.S. stocks continue to fall sharply in the future, those companies with high leverage and thin cushion will be further exposed. Boeings example warns companies and macro policy makers to keep an eye on themselves and not be too aggressive financially because of their apparent strength. You know, the thickness of the cushion is the safety factor at the critical moment. Source: responsible editor of Securities Times: Yang bin_nf4368

All the financial crisis and economic crisis first hit the highly leveraged companies, industries or fields. The crisis in 2008 caused the financial sector tsunami and many family bankruptcies in the United States, because the leverage ratio of the financial sector and family sector was too high, and the real enterprises did not have a major crisis. At present, the leverage ratio of the U.S. financial sector is under control, and the macro leverage ratio (corporate debt / GDP) of non-financial enterprises is not high, only 75%, lower than 155% of China, 100% of Japan, but higher than 55.5% of Germany. This is also the reason why the U. But from the micro level, there are some enterprises whose finance is too radical and only reserves cash according to the routine, which is very fragile when black swan or systemic risk comes. If U.S. stocks continue to fall sharply in the future, those companies with high leverage and thin cushion will be further exposed.

Boeings example warns companies and macro policy makers to keep an eye on themselves and not be too aggressive financially because of their apparent strength. You know, the thickness of the cushion is the safety factor at the critical moment.