Official FReeper Reporter honorary badge to be worn with pride.
Posted on 09/20/2021 7:11:37 AM PDT by CIB-173RDABN
Evergrande operates and develops 1,300 real estate projects across China and employs 200,000 people. The company financed its breakneck expansion with credit and bond issues. But the pandemic has paralyzed its operations. Its debt equates to two percent of Chinese Gross Domestic Product.
(Excerpt) Read more at youtube.com ...
(I have not posted anything in years, hope I checked all the correct boxes)
I posted this because some believe that China has a powerful economy while I believe it is all an illusion. There are many stores on China on you tube from many different sources.
Who knows, but the CCP knew this would happen when they tightened debt ratios.
Communist country adopting capitalistic practices while adopt Communism? Hmmmm?
Well, between China and Joe Stolen, they’re doing a pretty good job on our economy too.
Let’s hope so. It will take down many billionaires here and their sellout companies, too. And kill employment of 1000 unregistered china lobbyists, and $$$ for many traitors in Congress.
Please let it be the first of many economic collapses we see in China this year. Karma baby...
Evergrande is only something like 1% of China’s economy...so no.
For many years, there have been reports of Chinese building essential ghost cities as part of massive infrastructure spending. I guess those chickens are coming home to roost.
It won’t collaspe if they hodl.
This could be a problem as they owe billions. If you (a Chinese company) we’re relying on those payments to pay YOUR bills…that might be an issue.
The CCP is going to have to inject a bunch of liquidity. But they pick winners and losers. And that’s never a good thing.
1% of an economy—when it fails—is a huge deal. These things tend to cascade. Will it bring down the world? Probably not. Will it bruise a lot of folks? Yup.
Since it’s a commie country, I suspect nothing will happen. The Chicom government might seize it, and offer creditors a deal they can’t refuse.
Due to zoning law changes, California property may face new mortgage caps.
Instead of condos selling for hundreds of thousands of dollars, they might sell for around $100,000 each in a few years time.
There will be defaults and mortgage abandonments on a massive scale.
Since single family neighborhoods may become riddled with Section 8 hellholes, there will be pain in that market too.
Every single family neighborhood in California that is not in an HOA might try to protect itself with one.
Those comrades living in “glass houses” should not throw “stones”.
Wall Street troubles brought down Credit Anstalt in Austria in 1931.
Official FReeper Reporter honorary badge to be worn with pride.
The markets are taking a beating now down 557 points.
The danger is that an authoritarian government in the throes of economic collapse will try to distract their angry population by turning their attention outward. They are already beating the war drums towards Taiwan after years of propaganda claims that Taiwan is rightfully Chinese territory and are ramping up claims the US is bullying them. Biden and the US military is signaling weakness and an unstable regime may very well start a war to prop themselves up.
I agree - that 1% is multiplied when market sentiment then kicks in.
Biden and the US military is signaling weakness and an unstable regime may very well start a war to prop themselves up.
Japan, South Korea, Viet Nam, the Philippines and India all have interest in what China does. If they simply block China shipping it would hurt China.
China is in a box of her own making. Instead of being an honest broker in international trade China was/is a bully. No body likes China.
China could go nuclear and be destroyed in return.
China could go traditional and invade Taiwan which is a lose lose situation for China.
China is in some ways like the old Soviet Union. A nation made up of many regional areas held together not by loyalty but military might. If China starts a war it is possible that some of those areas (with the help of Russia and India) would break way.
All of this is above my pay grade. The one thing I know is that China is not as all powerful as we are meant to believe.
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