Actually the problem isn't the company but the complicated legal BS in China that forces its citizens to all buy houses/apartments in order to function with all the rights in society. Government malfeasance and money printing are huge problems in China, as it is here in the states and elsewhere in all the "developed" countries
Evergrande hired debt-restructuring company Houlihan Lokey which handled the collapses of Lehman Brothers, Enron, and Worldcomm (three of the biggest scandals in history). What could go wrong?
@@cf3661 That only means they are using the money to finance some other projects but not your house here in the USA 🇺🇸 we don’t do anything like that is insane 🧐
@@hashimkimwaga1864 ghost city might be true a decade ago, but since 2016 most of those ghost city are filled, but it is true that the demand is definitely decreasing because it is obvious that China gov have a hard crackdown on housing prices to boost its third child policy
Evergrande taps Houlihan Lokey which had “Lehman, Enron and Worldcom” as customers … hmmm … Evergrande must be that desperate to tap a company that failed in saving these top 3 biggest corporate bankruptcies in the US. It indeed doesn’t look good. 🤔 If I am Evergrande debt or bond holder, I am not sure if I will be happy that they have Houlihan Lokey on board. 😰
Guess countries will be just content with what they have and the people will just rummage on used and second product till the smoke clear or all foreign companieswho bail out had settled down for operation elsewhere to continue production. I thought the adage or saying "DO NOT PUT ALL YOUR APPLES IN ONE BASKET" was followed by these greedy businessman. They should be penalyze by their own government if their country be affected on the Evergrande fiasco. Also no bail out for investors.
You dont understand that one dept is the dept of a company and the other is the dept of a nation. You also don’t understand that nations dept is for almost all nations in dollars. But the US is the only one that can print dollars. So they basically can print their depths if they really need. The only downside they would face doing it is a bit of inflation.
I had a laugh when you said the founder of evergrande was the richest man in china, i'm think, that was all smoke & mirrors & only based on paper, NOT cold hard cash or ownership ?
Now is the time to show how to approach the real estate issue properly. Let's see if China - one of the oldest civilizations in the world - can handle the problem any differently than any other nation.
China lets the air out of the housing bubble and deal with it. almost everyone involved will be made whole, speculators/investors will get what's left.
This could potentially be the third financial crisis(if left unchecked) in as many decades. So we are all basically doomed to repeat this every decade because people/government/business cant use debt reponsibly?
@@bobbyosborne2375 China isn't capitalist. Nothing they do is unhindered. This is a crisis manufactured by the CCP. They used the leveraging of the real estate to cover their lackluster GDP. Then they put a stranglehold on lending similar to what caused the great depression. Now Xi Jinping, a Maoist, is about to deflate the whole economy to deleverage. No capitalist nation would or could do that. Capitalist nations traditionally use inflation to deleverage. Like Joe Biden is doing right now. China is about to give the whole world the finger and return to the policies of the pre-Nixon era.
Actually, os the destiny of every single country that was under comunism ideology in political aplication... Even when they HAD to use some "capitalistic methods"
I still don’t understand why Americans aren’t more worried about the fact that their country is on the brink of bankruptcy. Their congress has to raise the debt ceiling every year or every other year. I don’t know how many times I have heard this news. The general public in the US seems to be more preoccupied with other nations debt than their own. How bizarre!
Actually, a guy named Andrew Left of Citron Research flagged the problem with Evergrande as early as 2012. You can still find his report online. CNBC had a segment about him and his prediction not all that long ago.
If someone listens to Andrew left and short the stock from 2012, His account had been busted long time ago. Citron sucks, he seems to have not gotten the listen from GME.
@@baibeiye And yet his claims about Evergrande have turned out to be remarkably accurate, have they not? Which suggests that his prosecution a decade or so back was mainly about shutting him up by those in China with something to hide.
if you print massive amount of money there will be inflation or it's value will decrease. Basically china will have to spend more to buy the same thing international
95% of the debt is own in Chinese currency , and Evergrande has hard assets to cover the debt, Lehman had no assets. Us funds are now buying the bonds because they trade below recovery value, which means Evergrande is trading bellow book value. CNBC’s fud as usual to help institutions buy cheap Chinese equities before the run up !
@@peterfireflylund China has not touched to their interest rates , it is still at 4% , and their QE is way behind the US , they are in a much better position to deal with a slow down. Like in 2016 and 2018 they will act , China's bull market will start when the US bear market starts, Wall Street has set up their escape plan from the overbought US market by demonising China in the last 12 months. Last place you want advise from is CNBC.
I can't believe they have to start paying for mortgage before the product is finished. There are so many things that can go wrong in this and allow the system to take advantage of the small investors
They say this won't spill over, but these so called mortgages are loans, so right now with evergrande making news people would just stop paying their mortgage cause they know they won't get a house with the current crisis, this means banks have given out loans they cannot recover. Food for thought
Since Evergrande is the largest developer and has been in business for over two decades, it is hard for me to believe that other property developers are not doing business in the same manner.
Blown out of proportion, default was 19 billion, rest of the debt are backed by land assets. Lehman bros was debt instraments in the 500 plus billions on default, that’s a different problems China has faced this before with the insurance conglomerate AB insurance of bigger size debt, and it blew over just fine a few years ago. I’m willing to bet the Chinese looked at this very carefully and has the capacity to take the blow and not be hurt by it.
This is a canary in the coal mine as far as china's real-estate market goes way too much speculation because it is the only way a Chinese citizen can invest.
If you make a mistake YOU should pay the price. No government should EVER bailout any company no matter how big it is. It's the tax payer's money and should be spent on their needs and necessities.
Your comment makes no sense, Evergrande is a Chinese company. The world's rules do not apply in China. They do not care. The fools that own this debt will get shafted, and China will not care.
@@donjuan3912 This is all the doing of the CCP. The CCP plans ahead and they can see the property market bubble for a while now. Either the CCP bails out by either letting other companies to take over Evergrande assets or just turn it into state owned. The CCP might just let the bubble burst.
Problem is if the bubble bursts too rapidly, it ends up as a destructive explosion. Modern China has very little experience handling a capital economic downturn coming from within, and habitually overreacts to even perceived internal issues.
The problem is that once you get big enough, your problems becomes everyone's problem. Their failure won't happen in a vacuum/sandbox. China has stacked the leverage on real estate extremely high. The failure of Evergrande is a symptom of that leveraging in a slowing economy. As they fail, and flood the market with property, dragging down real estate values, many other developers and debt holders are going to go down the same way.
No surprise at all. The houses in China crumble down within 3 years, because of the poor materials/techniques they use when building new houses. So it is no wonder the housing crisis will catch up with them. There is absolutely no common sense building like that. Someone is pressuring the builders to build at a massive speed and they use as many short cuts as possible to satisfy the "person" driving them. It is catching up now. It cannot last. The Ghost Towns is common knowledge now of the masses of buildings crumbling down with no occupants. There is also a power shortage in China, so no elevators work in those high rise buildings. People (especially old people) are walking up all those flights of stairs daily now.
Only in China..pay first while the building/condo WILL JUST BE STARTED. And the buildings are just very sub-standard..just TOFU BUILDINĢS..very easy to collapse.
Well CCP is probably going to do a semi bailout to maintain “social stability”,basically bailing out their domestic debts and flip the bird on foreign debts.
evergrande is ONE company. Yes, it may cause domino effect, but minimal. Meanwhile, USA, THE COUNTRY is also facing DEFAULT and the time is ticking out, 18 oct. Do you know the consequence of this? Why de hell don't you put out that news more on your headline?
there is a reason why one company in whatever country may not monopoly / run many business especially run by debt to growth since if they collapse,they will bring whole system to grind.
Chinese have an history of being the primary disruptive influence on the real estate market where they live. Here in GTA (Toronto) about 1/2 the population is Chinese and I'm looking forward to a major correction. If so, hopefully the locals who grew up in the area can once again afford property.
@@ilikespam8009 all the "locals" I know own at least three houses iln Vancouver. Old money, laundered money, stolen money, and who exactly are the "locals"???
If u ask Indian channels, they will say all fine and market will not get affected by these issues and Nifty will touch 1 Lakh mark shortly. Even a crash is a correction for them. They are making fool of innocent investors.
@@xiaoyan1625 Nope, None economist said that during the time period you have mentioned, at contrary investors and businesses were bullish on China in the last 30 years. But now the party is over, Evergrande, the well known chinese real estate bubble is about to explode big time, power shortage, Shanghai & H.K stocks lost 5 trillions $ in 2021 and it s just the beginning,, China can t afford buying oil and gas at their actual market price, this never happened before even when the barrel was at 140$, If you can t see all the big red flashing warnings, then you must be a hardcore CCP fan, or a bad investors living in a fantasy world and a future broke delusional individual. China is double done, they are going to taste the deep water.
@@junyuchen9548 Name dropping one out of thousand economists, edge funds, foreign investors, doesn t invalidate my statement about how bullish the western world was on China in the past 30 years. You see! you C.C.P totalitarian narrow minded peoples are lacking of common sense, this very mind set is your downfall.This attitude is so childish. I know you and others commenting in this thread are wu Mao, good luck, because more and more people will laugh at china downfalls in the next few months.
This is the Chinese version of Aig not Lehman brothers.Its far worse than they are letting on and of course it will effect the markets which will stop the Chinese gravy train and that will have a significant effect on the western markets for sure.
Laws do not matter in China. Their constitution literally guarantees freedom of speech and protest. We all know how much of that their citizens have in reality.
the "market" should regulate companies by not loaning to fraudulent ponzi schemes. This free market regulation is always sidestepped by central bank (non free market) credit counterfeiting. That's the real fuel for all these debt laden organizations from Evergrande to GE to Oracle to the US Government
Not far off in many ways, China is going through a number of crisis's that other countries have been through. You can't change how economy works long term. It is just that China is doing all this is high speed train way. Going through all of it within a very short time!
Now we will see the difference between governments in western economies versus China. The Lehman Brothers collapse was managed in a way that transfered ownership of a million homes from families to hedge funds. Will China manage the Evergrande collapse to transfer real estate ownership to well connected insiders? In the US, the banks were bailed out instead of the home owners. The insolvent banks were given billions of zero interest government loans but demanded mortgage payments on time or else immediate foreclosure. The foreclosed homes were then owned by the Treasury Department (they bought the mortgages). The Treasury then auctioned off the homes to investors in a way that allowed only big hedge funds to bid ($50 million minimum & no flipping allowed. Up til then, the government routinely offered sale of foreclosed homes to anyone and listed them on their web site). Western institutions and government are controlled by billionaire thugs who deliberately manipulate the economy and rules in a way that enriches themselves in a zero sum game. Now we will see if CCP princelings are no different than rich western insiders.
Insolvent Banks were even given near zero interest loans which they immediately lent back to the government at a higher interest rate (RICO style corruption, but nobody will ever be charged)
After the 2nd world war , it has become mindset of almost every country-nation that " Bigger is Better " due to so many man made assumptions through multinational companies. Some serious Economist including Ernst F Schmacher ( 1911- 1977) gone for realistic approach of " Small is beautiful ". China's Champions have competence to handle this SMALL issue on MERIT. Not a problem at all.
This real-estate bubble is unhealthy state of affair. a lot more of these companies should be allowed to fail. it has resulted horrible waste of the resources and manpower, creation of ghost cities, poor- and low-quality building practices. most of houses are not used to create homes for living but for investment and speculation and just promote greed. fundament issue is that people cannot own property, there is not wealth creation if there is no possibility of owning your land and home.
Maybe I accidentally skipped the chapter in Marx and Engels about billion Dollar real estate empires being of benefit to the common good.
😂😆😂😂😆🤣
Actually the problem isn't the company but the complicated legal BS in China that forces its citizens to all buy houses/apartments in order to function with all the rights in society. Government malfeasance and money printing are huge problems in China, as it is here in the states and elsewhere in all the "developed" countries
Evergrande hired debt-restructuring company Houlihan Lokey which handled the collapses of Lehman Brothers, Enron, and Worldcomm (three of the biggest scandals in history). What could go wrong?
Bankcrupt
lol - another words how to save the assets of directors and senior managers
couldn't tell you...it's a mystery....
@Hrenml china numba one
Shoulda hired bernie madoff thats the only guy who knows how to run a successful pyramid scheme.
Evergrande doesn’t sound like it will be grand for much longer.
Confirm collapse!
Europe too, with our shit politicians, they cant even make a normal deal with the Russians with gas prices
Paying for a home before is insane.
Is stupid is like paying for a car before you take possession of the car 🧐
People do it here in Canada. Before the shovel has broke ground. It’s stupid IMO.
@@cf3661 That only means they are using the money to finance some other projects but not your house here in the USA 🇺🇸 we don’t do anything like that is insane 🧐
Plus you never own the land, the state does. You lease it and then have to renew that lease decades later.
It is called preselling it happens all over the world.
The ordinary folks had forcefully sold their lands at a cheap price
When there is oversupply and declining demand you know a crisis is looming
Frankly there no over supply from a 1.2 bil populations at all as this property that already build n can stay they can rent it out .
@@tancolvis5240 guess you have never heard about 'ghost cities of china'
@@hashimkimwaga1864 ghost city might be true a decade ago, but since 2016 most of those ghost city are filled, but it is true that the demand is definitely decreasing because it is obvious that China gov have a hard crackdown on housing prices to boost its third child policy
@@Ilovecruise 20% of houses in China are empty. If thats not a complete over supply I dont know anymore
Hoe mutch bitcoin’s are in the world 18.000.000 piece, how mutch people are Ther 7.000.000.000 people. Good luck with you’r fiat paper shit.
Don't put your money in the Bank of America's of the world. Imagine, 1.6 million flats prepaid...that's a looooot of people losing a whole Lotta homes
problem is how many company can government bailout .because lots of companies will get bankrupt in coming months
Plain and simple poor management and taking on too many loans not repaying debt.
China's debt vs American debt.... Wow.
Evergrande taps Houlihan Lokey which had “Lehman, Enron and Worldcom” as customers … hmmm … Evergrande must be that desperate to tap a company that failed in saving these top 3 biggest corporate bankruptcies in the US. It indeed doesn’t look good. 🤔
If I am Evergrande debt or bond holder, I am not sure if I will be happy that they have Houlihan Lokey on board. 😰
like buying a coffin for your company
You have to wonder why people would trust a company that has the Norse god of trickery and deceit in its name.
Can we pay China to house our homeless in all the empty apartments they've built up?
Typical americans jealousy...
@@ikgeek True. However, can you still house the homeless
Youre retired?
They don't even give the empty houses to their own citizen....
but those houses are not fit for living
As They Speed Up Construction They Will Get Sloppy
Expect "Structural Failures" Within 20 yrs ? All Over China ??
Very informative.
Guess countries will be just content with what they have and the people will just rummage on used and second product till the smoke clear or all foreign companieswho bail out had settled down for operation elsewhere to continue production. I thought the adage or saying "DO NOT PUT ALL YOUR APPLES IN ONE BASKET" was followed by these greedy businessman. They should be penalyze by their own government if their country be affected on the Evergrande fiasco. Also no bail out for investors.
Evergrande should punish china abuses to the pilipinos
Im Filipino, What abuse?
Ano po yan?
"One of the most valuable property company"
That's an interesting description.
Only 300 billions? not 30 trillions, tiny issue when compared to American debt
You dont understand that one dept is the dept of a company and the other is the dept of a nation. You also don’t understand that nations dept is for almost all nations in dollars. But the US is the only one that can print dollars. So they basically can print their depths if they really need. The only downside they would face doing it is a bit of inflation.
I had a laugh when you said the founder of evergrande was the richest man in china, i'm think, that was all smoke & mirrors & only based on paper, NOT cold hard cash or ownership ?
HOW IS THIS COMPARE WITH THE 25 TRILLION DOLLARS OF US AND STILL PRINTING THE GREEN TOILET PAPER.
One city made for living other badlly built onlly for investers monney manipulation..what can go wrong
Liberation of tibet,xinjiang,inner mongolia,hongkong,macau,taiwan
Now is the time to show how to approach the real estate issue properly.
Let's see if China - one of the oldest civilizations in the world - can handle the problem any differently than any other nation.
China lets the air out of the housing bubble and deal with it. almost everyone involved will be made whole, speculators/investors will get what's left.
Tofu Dreg falling apart in hours.
Guarantee corruption lol
China to Evergrande: Bail your own ass out!
In China there's no such thing as "too big to fail"..
This could potentially be the third financial crisis(if left unchecked) in as many decades. So we are all basically doomed to repeat this every decade because people/government/business cant use debt reponsibly?
Unhindered capitalism at its finest.
@@bobbyosborne2375 China isn't capitalist. Nothing they do is unhindered. This is a crisis manufactured by the CCP. They used the leveraging of the real estate to cover their lackluster GDP. Then they put a stranglehold on lending similar to what caused the great depression. Now Xi Jinping, a Maoist, is about to deflate the whole economy to deleverage. No capitalist nation would or could do that. Capitalist nations traditionally use inflation to deleverage. Like Joe Biden is doing right now. China is about to give the whole world the finger and return to the policies of the pre-Nixon era.
Actually, os the destiny of every single country that was under comunism ideology in political aplication...
Even when they HAD to use some "capitalistic methods"
@@bobbyosborne2375 dude, check your facts... china is utterly comunist... even in the market
@@holoshrimping their market has capitalism baked into it. It's a little different than Soviet Russia circa 1985.
I still don’t understand why Americans aren’t more worried about the fact that their country is on the brink of bankruptcy. Their congress has to raise the debt ceiling every year or every other year. I don’t know how many times I have heard this news. The general public in the US seems to be more preoccupied with other nations debt than their own. How bizarre!
Actually, a guy named Andrew Left of Citron Research flagged the problem with Evergrande as early as 2012. You can still find his report online. CNBC had a segment about him and his prediction not all that long ago.
If someone listens to Andrew left and short the stock from 2012, His account had been busted long time ago. Citron sucks, he seems to have not gotten the listen from GME.
@@baibeiye And yet his claims about Evergrande have turned out to be remarkably accurate, have they not? Which suggests that his prosecution a decade or so back was mainly about shutting him up by those in China with something to hide.
No corporate law, no banking restrictions, greedy investors, naive and corrupt government officials - what could possibly go wrong?
The prelude of all chinese big companies… a lot will follow!!!!
No worry, Biden will bail them out..
It isn't the only one...
And the build quality isn't up to scratch either.
We’ll see if this becomes Kharma for the virus???
Don't worry the Federal Reserve will just print out 💵💵💵💵. 😏
Mass inflation is the problem
Yeah and a can of sardine is 12,000,000 RMB
venezuela and zimbabwe turned out well 😏
if you print massive amount of money there will be inflation or it's value will decrease. Basically china will have to spend more to buy the same thing international
Why did you not compare this to the US state debt of $28.43 trillion?
Flagged as a potential risk back in 2018? Hmm!
95% of the debt is own in Chinese currency , and Evergrande has hard assets to cover the debt, Lehman had no assets. Us funds are now buying the bonds because they trade below recovery value, which means Evergrande is trading bellow book value. CNBC’s fud as usual to help institutions buy cheap Chinese equities before the run up !
The assets are not likely to be worth much. The Chinese state can cover the losses by printing money... but that has other bad side effects.
@@peterfireflylund China has not touched to their interest rates , it is still at 4% , and their QE is way behind the US , they are in a much better position to deal with a slow down. Like in 2016 and 2018 they will act , China's bull market will start when the US bear market starts, Wall Street has set up their escape plan from the overbought US market by demonising China in the last 12 months. Last place you want advise from is CNBC.
China is coming apart at the seams. The cracks are showing in every sector
Whoever is the ceo is now thinking is squid game true?
So now u know greed wont get u nowhere
Up next *BlackRock*
Tick… Tick… Tick… ☣️☢️☣️
@@H33t3Speaks
Tok tok tok
lol, nope.
Blackrock owns the US government. They will not be the losers.
@@douginorlando6260
I said dat bout bear sterns & aig
The world more concern about the US huge debt should it default than the Evergrande.
Yes absolutely correct ✅✅✅. Most of the countries peg their reserves in USD ($) only.
Lehman Brother only in United States... don't use this term to other countries as there is only one wall street
CCP giveth and CCP taketh away.
**People will be kicking themselves in few weeks if they miss the opportunity to buy and invest in bitcoin **
Investing in cryptocurrency is one of the best chance
Stocks are good crypto is better
That won't bother you if you trade with a professional like Leo Martin's
He has really made a good name for himself
His success stories are everywhere 😱
Look at auditor PWC going concern statement in Evergrande's Dec2020 financials.
U happen to have a link for that? Thanks
Let's mention the US to make it seem as this Chinese mess is not as big!!
I can't believe they have to start paying for mortgage before the product is finished. There are so many things that can go wrong in this and allow the system to take advantage of the small investors
They say this won't spill over, but these so called mortgages are loans, so right now with evergrande making news people would just stop paying their mortgage cause they know they won't get a house with the current crisis, this means banks have given out loans they cannot recover. Food for thought
Investors should never dictate how to spend money cuz they don't know how that's why they give you money
USA Europe Middle East countries and African countries all has big debt problems so buckle up we’re going downhill fast
It is a problem only to American lenders.
People are likely to loose their hard earned money.
Evergrande debt 300 billion US dollars💵💵
Russia less debt
Evergrande doesn’t have any entanglement with America I pray!
No... what you have is Americans investors who weakness was greed is caught up in this scam cycles.
i still don’t understand why should i care
same bs different country
Maybe they should have built multiple smaller towns instead of one huge city to avoid some risk.
Fantasia has cash flow problems as well and stress is showing in other Chinese property developers. The whole sector is going to come apart.
Since Evergrande is the largest developer and has been in business for over two decades, it is hard for me to believe that other property developers are not doing business in the same manner.
Blown out of proportion, default was 19 billion, rest of the debt are backed by land assets. Lehman bros was debt instraments in the 500 plus billions on default, that’s a different problems China has faced this before with the insurance conglomerate AB insurance of bigger size debt, and it blew over just fine a few years ago. I’m willing to bet the Chinese looked at this very carefully and has the capacity to take the blow and not be hurt by it.
This is a canary in the coal mine as far as china's real-estate market goes way too much speculation because it is the only way a Chinese citizen can invest.
Nice explanation
𝓔𝓥𝓔𝓡𝓖𝓡𝓐𝓝𝓓𝓔 💲
If you make a mistake YOU should pay the price. No government should EVER bailout any company no matter how big it is. It's the tax payer's money and should be spent on their needs and necessities.
Your comment makes no sense, Evergrande is a Chinese company. The world's rules do not apply in China. They do not care. The fools that own this debt will get shafted, and China will not care.
@@donjuan3912 This is all the doing of the CCP. The CCP plans ahead and they can see the property market bubble for a while now. Either the CCP bails out by either letting other companies to take over Evergrande assets or just turn it into state owned. The CCP might just let the bubble burst.
Problem is if the bubble bursts too rapidly, it ends up as a destructive explosion. Modern China has very little experience handling a capital economic downturn coming from within, and habitually overreacts to even perceived internal issues.
The problem is that once you get big enough, your problems becomes everyone's problem. Their failure won't happen in a vacuum/sandbox. China has stacked the leverage on real estate extremely high. The failure of Evergrande is a symptom of that leveraging in a slowing economy. As they fail, and flood the market with property, dragging down real estate values, many other developers and debt holders are going to go down the same way.
@@donjuan3912 It is not just China it is happening right now around the world including USA .
Is the u.s friend not china.
Up and down......
Hahahahahahhahaha
Nice video.
No surprise at all. The houses in China crumble down within 3 years, because of the poor materials/techniques they use when building new houses. So it is no wonder the housing crisis will catch up with them. There is absolutely no common sense building like that. Someone is pressuring the builders to build at a massive speed and they use as many short cuts as possible to satisfy the "person" driving them. It is catching up now. It cannot last. The Ghost Towns is common knowledge now of the masses of buildings crumbling down with no occupants. There is also a power shortage in China, so no elevators work in those high rise buildings. People (especially old people) are walking up all those flights of stairs daily now.
Like the Miami condo or sinking millennium tower in San Francisco
Where's the liquidity ?
Domino spiralling !
When a short seller sounded the alarm and investors ignored the smoke! Sooner you will be burned!
evergrande don't need to pay , what can anybody dare to do ?
CNBC covering and publishing this means it’s happening. I’ve seen it coming lol
So true. Deja vu!!!
Just giving a heads up but alot of things are gonna change when The MK Ultra ends & Plan Z Agenda is why specially in 🇺🇸
@@thesource4189 please elaborate?
Only in China..pay first while the building/condo WILL JUST BE STARTED. And the buildings are just very sub-standard..just TOFU BUILDINĢS..very easy to collapse.
I don't understand.. the banks are not privately owned yet run into such crisis...
tofu dreg project
A bailout is just kicking the corruption can down the road, they need to bite the bullet =)
Well CCP is probably going to do a semi bailout to maintain “social stability”,basically bailing out their domestic debts and flip the bird on foreign debts.
THE HOUSE ALWAYS WINS IN LAS VEGAS.
@@williammiao8862 hehe you were right
evergrande is ONE company. Yes, it may cause domino effect, but minimal. Meanwhile, USA, THE COUNTRY is also facing DEFAULT and the time is ticking out, 18 oct. Do you know the consequence of this? Why de hell don't you put out that news more on your headline?
So Sad..
It will ripple through Australia too. Iron orr prices will collapse
there is a reason why one company in whatever country may not monopoly / run many business especially run by debt to growth since if they collapse,they will bring whole system to grind.
You guys made us to learn a lesson...thanks
Chinese have an history of being the primary disruptive influence on the real estate market where they live. Here in GTA (Toronto) about 1/2 the population is Chinese and I'm looking forward to a major correction. If so, hopefully the locals who grew up in the area can once again afford property.
Long Live Chinese Toronto
Im hoping the locals who grew up in Vancouver can afford property once again.
uh, no, HALF the population ISN'T Chinese.
@@ilikespam8009 all the "locals" I know own at least three houses iln Vancouver. Old money, laundered money, stolen money, and who exactly are the "locals"???
@@Dwightstjohn-fo8ki goto local Lexus dealership in the morning and see type of peeps that are in for service. Stats does not reflect reality.
Was this guy a Trump University graduate???
If u ask Indian channels, they will say all fine and market will not get affected by these issues and Nifty will touch 1 Lakh mark shortly. Even a crash is a correction for them. They are making fool of innocent investors.
China has never been so weal and in troubles.
Really? China is supposed to collapse multiple times in the last 30 or so years Lmao
@@xiaoyan1625
Nope, None economist said that during the time period you have mentioned, at contrary investors and businesses were bullish on China in the last 30 years.
But now the party is over, Evergrande, the well known chinese real estate bubble is about to explode big time, power shortage, Shanghai & H.K stocks lost 5 trillions $ in 2021 and it s just the beginning,, China can t afford buying oil and gas at their actual market price, this never happened before even when the barrel was at 140$,
If you can t see all the big red flashing warnings, then you must be a hardcore CCP fan, or a bad investors living in a fantasy world and a future broke delusional individual.
China is double done, they are going to taste the deep water.
@@freedomisdead9638 The Coming Collapse of China Paperback - July 31, 2001
Evergrande is in trouble, China is not.
@@junyuchen9548
Name dropping one out of thousand economists, edge funds, foreign investors, doesn t invalidate my statement about how bullish the western world was on China in the past 30 years.
You see! you C.C.P totalitarian narrow minded peoples are lacking of common sense, this very mind set is your downfall.This attitude is so childish.
I know you and others commenting in this thread are wu Mao, good luck, because more and more people will laugh at china downfalls in the next few months.
the news is sobering enough without the theatrics
This is the Chinese version of Aig not Lehman brothers.Its far worse than they are letting on and of course it will effect the markets which will stop the Chinese gravy train and that will have a significant effect on the western markets for sure.
setting precedent means nothing in China, they'll say yes to this and no to another, there is no legal avenue to have them enforce that.
Suddenly that's a problem for you when Theranos, based in California defrauded investors of U$10 billion.
@@15seconds3 setting précédents mena a lot to them. They can kill legally, just look at what happened in Iraq and Afghanistan.
@@xiaoyan1625 Killing someone is not a precedent.
Laws do not matter in China. Their constitution literally guarantees freedom of speech and protest. We all know how much of that their citizens have in reality.
@@indianatarzan8001 You could literally replace USA for China and your little speech would describe the same thing.
there is a chinese man or korean that works in Mt eden corrections facillity auckland new zealand his name is not eric....
Hi all friends
😍😍❤️❤️😍😍❤️❤️
☺️
Sounds like some behemoths are far too big for "regulators" to regulate. Red flags appeared since 2018 and still this happened.
the "market" should regulate companies by not loaning to fraudulent ponzi schemes. This free market regulation is always sidestepped by central bank (non free market) credit counterfeiting. That's the real fuel for all these debt laden organizations from Evergrande to GE to Oracle to the US Government
This reminds me of IL&FS crisis that happened in my country.
Not far off in many ways, China is going through a number of crisis's that other countries have been through. You can't change how economy works long term. It is just that China is doing all this is high speed train way. Going through all of it within a very short time!
Now we will see the difference between governments in western economies versus China. The Lehman Brothers collapse was managed in a way that transfered ownership of a million homes from families to hedge funds. Will China manage the Evergrande collapse to transfer real estate ownership to well connected insiders? In the US, the banks were bailed out instead of the home owners. The insolvent banks were given billions of zero interest government loans but demanded mortgage payments on time or else immediate foreclosure. The foreclosed homes were then owned by the Treasury Department (they bought the mortgages). The Treasury then auctioned off the homes to investors in a way that allowed only big hedge funds to bid ($50 million minimum & no flipping allowed. Up til then, the government routinely offered sale of foreclosed homes to anyone and listed them on their web site). Western institutions and government are controlled by billionaire thugs who deliberately manipulate the economy and rules in a way that enriches themselves in a zero sum game. Now we will see if CCP princelings are no different than rich western insiders.
Insolvent Banks were even given near zero interest loans which they immediately lent back to the government at a higher interest rate (RICO style corruption, but nobody will ever be charged)
没有区别，富人永远不会关心下层阶级
This is why China never package it as MBS and sell it like subprime loan.
After the 2nd world war , it has become mindset of almost every country-nation that " Bigger is Better " due to so many man made assumptions through multinational companies. Some serious Economist including Ernst F Schmacher ( 1911- 1977) gone for realistic approach of " Small is beautiful ". China's Champions have competence to handle this SMALL issue on MERIT. Not a problem at all.
The ccp owns universal studios and cnbc!
This real-estate bubble is unhealthy state of affair. a lot more of these companies should be allowed to fail. it has resulted horrible waste of the resources and manpower, creation of ghost cities, poor- and low-quality building practices. most of houses are not used to create homes for living but for investment and speculation and just promote greed. fundament issue is that people cannot own property, there is not wealth creation if there is no possibility of owning your land and home.
Not only are you late reporting, but nothing has happened.
Tulip bulbs.
It's interesting we point at China while there debit is tiny compared to the USA $300 trillion in the derivative markets
What do you mean our debt was wiped clean
It's a joke to our mortgage backed securities. Lehman didn't actually owne assets .