I swear just a couple of days ago I was wondering what happend with the whole evergrande thing since its been months since I last heard about this huge problem. Thank you for keeping us well informed as always!

@cdo...49283

4 ай бұрын

Literally same..

@TheDeltatangowhiskey

4 ай бұрын

Same here

@dengernoodle4391

4 ай бұрын

That means you killed it

@hokroeger

4 ай бұрын

Lehman Brothers Bankrupted And Gone For Good. What Now? Costco About To Bankrupt. What Now? Boeing About To Go Bankrupt. What Now? ICE Car Industry About To Go Bankrupt. What Now?

@phunweng962

4 ай бұрын

I am Chinese here let me providing new context. China have been purposely postponing this thing. They’re trying to just ‘ignore the law this time’ bc obviously they can. In other hand they’ve been also making HongKong sharing legal decisions with them (I don’t know the correct term here but it will make China and Hongkong court acknowledge each other’s judgement) The purpose of this is to let China jail any Hongkonger with China’s law easily. But it has backfired in a way China doesn’t want. Again China has an option to just: ignore the entire thing too in their convenience. But let’s see.

Truly the plainest Bagel on the internet. Plain terminology, plain presentation, easily digestible and full of dietary fiber that makes the information clear your brain easily. I know nothing about economics really, and this channel manages to make plain these complex and multi-faceted topics such that I can understand them. Thanks Richard, you are the internet's Morning Plain Bagel.

@tibettenballs4962

4 ай бұрын

I used to stiqq my diqq thru a plain bagel and have my dog nibble on it. His username triggers me. I’m going to relapse. Richard, plz help.

@toilet_cleaner_man

4 ай бұрын

@@tibettenballs4962 this is truly one of the replies of all time, thanks mate.

@lacsativ1

4 ай бұрын

Bad comparison with dietary fiber, which more and more studies seem to suggest it is not at all that beneficial and can actually negatively impact people who deal with IBS, which has been my experience as well. I would compare The Plain Bagel to protein instead.

@toilet_cleaner_man

4 ай бұрын

@@lacsativ1 we eat fiber the same way dogs eat grass, it helps with digestion. Too much fiber is detrimental because it can cause intestinal blockages and bloating, but modern humans don't eat enough foods high in fiber for that to be a real issue.

@edgbarra

2 ай бұрын

​@@lacsativ1what studies are you talking about? If anything, people are not getting enough fiber. Just some people have problems with it, due to specific illnesses.

Richard, every video you make you must get a warmth sense that “the plain bagel” was a brilliant idea for the channel name. Once again a resolutely balanced and non-sensationalist explanation, thanks. Keep up the great work 🫶🏼

richard coffin is a sic western gunslinger name.

@Flaccid_Banana

4 ай бұрын

Or a sick Canadian financial professional lol

@twistsnakeanklesvids261

4 ай бұрын

When he said "final nail in the coffin" I was going to ask if that was his Onlyfans.

@mat3714

4 ай бұрын

I think he's an off branch of the graveyard lineage.

@MayorMcC666

4 ай бұрын

Sheriff Dick Coffin

@Danji_Coppersmoke

4 ай бұрын

Someone came into the saloon via the swing door and shouted" Mr. Coffin is coming". Then everyone pulled out their revolvers.... that is the start of a story..

The presale mechanism seems broken and not that hard to fix/prevent future failures. In the US, presales are held in escrow until the project is ready for occupancy. The developer finances construction separately and pays that off/banks profit when the escrow is released and the housing is delivered. Move to that model and you lose the ponzi nature of selling the next project to finish the current one.

@thewhitefalcon8539

4 ай бұрын

That's still a different kind of stupid because now you have this big pile of money but you're not allowed to use it to pay for things so you're forced to borrow the money you already have and pay interest you wouldn't have needed to pay

@robwayne

4 ай бұрын

​@@thewhitefalcon8539 But that "big pile of money you can't use" is the only incentive to not pull a scam. That's the best way to do things, otherwise you get an Evergrande.

@douglassun8456

4 ай бұрын

Yes, and I was shocked to learn that China didn't have such a system. I can't imagine paying a real estate developer that kind of money purely on faith. Unfortunately, it seems like that isn't the only problem that the real estate sector is going to face, either in the short or long-term. It's only a matter of time before prices plummet - lots of slack capacity (condos built but unsold), demographic collapse (Shanghai Academy of Social Sciences estimates the population will fall to 600 million by the end of the century), and widespread demoralization among the current generation that ought to be entering the job market, starting families and buying homes ("Lying Flat").

@CharlesBallowe

4 ай бұрын

@@thewhitefalcon8539 it moves the risk. Right now Chinese property buyers take out a mortgage, give the money to the developer, and start making mortgage payments on a home that doesn't exist. If the developer collapses, they lose their money with nothing to show for it. The presale mechanisms are often not a full mortgage (financing arranged, deposit paid, but since the bank hasn't finished the payment there's no interim cost to the buyer) etc, but if the developer fails the escrow goes back to the buyer.

@TheChadD315

4 ай бұрын

​@@thewhitefalcon8539 What would be a better solution?

The Plain Bagel makes a toast joke?!

@kyletan4063

4 ай бұрын

Literally unwatchable... Outrages!

@MegaLietuvislt

4 ай бұрын

Cancel this glute monster!

@lbgstzockt8493

4 ай бұрын

I yearn for baked-goods based humor

@Magic_beans_

4 ай бұрын

If anybody needs to be taken down a peg, it’s waffles.

Hey, I love these videos. You are one of the few finance focused youtubers that are not focused on sensation of over the top content. Wish there were more like you/your channel. Keep up the good work!

I think the scale matters too. In 2008, when Lehman Brother liquidated, it had $613 billions in debt, ~4% of US $14.8 trillion GDP back then. When Evergrande was ordered to liquidate last week, it has $297 billions in debt or ~1.6% of China’s $17.52 trillion GDP. Also, Evergrade has debt-to-equity gearing ratio of 2.7 (though admittedly, it’s impossible to liquidate these asset at appraised value) - but still, Lehman brother before liquidation had debt-to-equity gearing ratio of ~30.9. Overall, Chinese real estate is in bad shape but much better shape than US real estate bubble burst in 08 or Japan’s in 92. It’s mostly caused by oversupply steaming from leverage and easy credit, not overinflated property price.

@EconClimate

4 ай бұрын

something us finace bro denies and fail to admit about lehman brother

@userunknown7675

4 ай бұрын

I mostly agree but the last part is ignorig "tofu dreg". There is way to much corruption in China to even guess how many of the buildings build in the last 2 decades are absolute death traps due to cutting cost on everything.

@justSTUMBLEDupon

4 ай бұрын

Thank you

@justSTUMBLEDupon

4 ай бұрын

@@userunknown7675you got a point there. There is also another bigger real estate company going in the same direction. I forget the name of it though but it’s the next to go in China.

@triadwarfare

4 ай бұрын

​@@justSTUMBLEDupon country garden. Also, seems the other guy is spewing Chinese propaganda as they're taking Chinese statistics at face value. As a rule of thumb, never take countries with an open corruption culture at face value and always assume they're lying or inflating the numbers up.

Finally early! Always good to see something new from you

Love hearing a level headed reasonable take on these matters. Keep up the great work!

great explanation as always! keep up the good work

Great video! I was eager for this as soon as I saw the news

The Evergrand bankruptcy highlights an even bigger issue for creditors, that is what rights do creditors have in when is essentially a state controlled enterprise. This also highlights difference in bankruptcy laws and rights between Hong Kong, mainland china and foreign jurisdictions. If foreign lenders feel they will never get anything back foreign capital will dry up in china.

@mrwolsy3696

4 ай бұрын

Chinese stocks will turn into junk.

@helloiamchuck

4 ай бұрын

The lesson to external (non-Chinese) investors has already been communicated in big red letters by the CCP: if your investments in China go south, you are SOL, with no legal path available for any kind of recovery. In this kind of environment, only the most degenerate gamblers would invest in China, and they're going to demand an astonishing risk premium.

@andrewwotherspoona5722

4 ай бұрын

😮Evergrande will barely damage the Chinese economy.

@suciured7066

4 ай бұрын

I mean it has so far...@@andrewwotherspoona5722

@AdumbroDeus

4 ай бұрын

​@@andrewwotherspoona5722 Probably, assuming that the way China handles it doesn't spook foreign creditors.

Hi, I have experience in Chinese real estate here. One thing I think wasn’t said in this video which is different in investing often times it’s several family put money together to buy one property. There really isn’t a house flip mentality which is why you haven’t seen a price drop.

@pseudocynic1

4 ай бұрын

More likely CPC control of the economy limiting supply/demand fundamentals of the pricing structure. In China, you can't separate the government from business even if it isn't always immediately obvious to the naked eye.

@VOLUMEnightclub

4 ай бұрын

@@pseudocynic1 it’s very obvious in China, we arnt unaware of it. I think western economist really have a bad understanding the “blue collar” investor of China. Prices can’t drop if people don’t sell there units…Chinese households are just more conservative so most people arnt “stretched” to the limit and will just keep paying the mortgages. But there really isn’t a financial mechanism that incentivizes quick sales or flips…ok, let’s say you dump ur house. Where will you put that money? You lose on the mortgage maybe ~15%, but if you had put it in HK stock index ur down ~45% over 5 years or Shanghai down ~15% this past year alone…or you just have it sit in a bank and have inflation eat it. Hope this puts more context into Chinese households psychology.

@pseudocynic1

4 ай бұрын

@@VOLUMEnightclub Thank you for the insight. As I myself haven't been in China for over 40 years, I can't speak to the micro-economic environment or cultural factors and your observations are interesting and most welcome. From what we read in western media about "ghost cities" and large numbers of unsold real estate developments, I would think that market forces would drive prices down, especially in the case of an insolvent developer like Evergrande but evidently the real estate market in the PRC doesn't operate in the way one would expect. Perhaps the government favours a lengthier process of asset disposal to maintain a stable pricing environment in order to save leveraged owners from also becoming insolvent.

@VOLUMEnightclub

4 ай бұрын

@@pseudocynic1 so 2 things. 1. Ghost cities do exist but they’re in areas that no one wants to live, it would be like building 250k city in Montana and just expecting people. The problem is these cities had “middle class” investors…anyone with money bought property internationally (like my wife has property in Australia). So they have enough to pay the mortgage but don’t have anywhere else to put the money, so it’s somewhat “hope” it’ll go up. 2. I haven’t seen people talk about this but both the CCP and Chinese don’t have a deep understanding of finance and financial mechanism. Like Xi studied chemical engineer. So they have single variable solutions for there problems. They don’t understand quantitive easing etc. which is why if we read the news in the west China reports “everything is good” or “bankrupt”Evergrande probably could have been saved if they sold off assets over the years. but it’s not just the CCP but also educated Chinese, like I’ve known college graduates who don’t know what a PE ratio is (that was a mind blown moment). It comes down to, people just fundamentally not trusting numbers that govt reports or companies for that matter. Also a lot (not all) Chinese business owners don’t think long term, a lot of the people especially youth open up businesses believing it’ll go bankrupt in a few years it’s really strange. Because the lack of trust I think people just don’t study or learn them because they hold little value if reading or understanding a business profile. Idk if you’ll have a chance to go back but the people are fascinating. I would say unlike the US where our government somewhat accurately represents the zeitgeist of our culture. The people and CCP don’t think the same or portray the same mentality.

Lehman brothers cost: $691 billion US economy(2008): $14 trillion Evergrande cost: $330 billion China economy (2023): $18.8 trillion Evergrande and Lehman Brothers cannot be compared.

@creepersonspeed5490

4 ай бұрын

exactly, this is a way smaller cut.

I really appreciate these down to earth videos. Not the usual apocalyptic/drama laden approach many KZread video go for. This video is a sober, informative approach

Plain bagel is so plain and I love it.

@jimbojimbo6873

4 ай бұрын

What because he’s white and ginger? Unnecessary bro

@triarii9257

4 ай бұрын

He is the bagel, you are the cream cheese.

Your Content Stands Out In A Refreshing Way! I Truly Appreciate The Absence Of Background Music In Your Videos, As It Allows Your Message And Personality To Shine Through Without Distractions. Keep Up The Great Work!

I look forward to Richard’s next channel ‘The Plain Toast’.

@nicholasvinen

4 ай бұрын

"Dry Toast"?

@daple1997

4 ай бұрын

Slightly burnt toast

@MarztheStoic

4 ай бұрын

I like "Just Toast".

@alext1723

4 ай бұрын

"Toasted"

Fair minded, even handed information. THANK YOU!! Never change that. You're single handedly more useful than 70% of the zeitgeist.

Level headed and objective as always, great stuff!

Thank you for the clear and detailed analysis!

Appreciate the balanced view.

Great quality content as usual 👍

Bagel - I think one thing you could have touched on is the domino affect of this kind of issue with such a large entity. Since they are in the property business, The $86B of accounts payable you mentioned are mostly going to be money owed to subcontractors who were actually building their properties. These companies will also be in bad shape, with huge exposure to evergrande and now won’t be paid for their work. Many of those companies also owe other smaller subs (like civil construction firms owing their cement suppliers, etc), and the dominoes start to fall.

@user-oj7uc8tw9r

4 ай бұрын

More than likely, the government will step in and pay these contractors for a cut of the property earnings once sold. And as he said, evergrandes assets and liabilities can be sold to other developers who have the liquidity necessary to finish the projects.

@watchm4ker

4 ай бұрын

​@@user-oj7uc8tw9r Problem is, alot of those properties *have* been sold, in advance, and in full. But a substantial chunk of those payments had been used to secure further land for development projects, instead of simply building the ones they had.

Good and fair analysis, absent of unnecessary theatrics (unlike Grahams of the world).

You're missing the problem in that the general public invest in real estate in China far more than anything else, very different to the US where people invest in all kinds of things. That's why it's such a huge problem.

Thank you for the video, very clarifiying

All this in a country that already has the most expensive houses in the world in comparison with salary.

Thank you Richard!

You did an awesome job as always :)

Evergrande has over 1 million unfinished presold projects that have no chance of being completed. The bank loans that launched these projects are still required to be paid off despite the prospect of the buyers never receiving anything for their money. Defaulting on a loan is not an option. The money is still owed, and a large fine is levied on top of still owing the balance on the loan. Default also comes with restrictions on travel and access to educational opportunities for ones children. This is more serious than has been presented with the failure of Evergrande.

@henriikkak2091

2 ай бұрын

One million or one billion?

@oltedders

2 ай бұрын

@henriikkak2091 I have seen videos that say there are enough housing units (not all finished) for 3X the population.

China also wants the real estate sector to cool down. People spend too much money on rent and mortgages, and too little on consuming products. By decreasing their expenses for housing through a crisis, they increase their spending in more productive sectors. Higher real estate costs after all are a drag to the over all economy.

It was toast 2 years ago - the delay of 2 years allow certain parties to get their hands on the leftover real assets

The absolute best video on this matter.

I have been waiting for more on the Evergrande story for over a year.

You explain stuff in a way that is both sophisticated and understandable at the same - time. This blend of explanation has been a huge asset for your channel. I will not say Keep up the Good Work because I am sure you'll continue to do so!

Badass video! Could you do a video on trust funds?

Thank you!

8:15 I think this is the part where creditors will be reminded that mainland China is a state dominated economy that normally chooses stability over market mechanisms. It’s not unique to China, but it is part of the reason that most EM’s have spent 50+ years emerging.

great work , very interesting :)

Thank Plain Bagel for the information. I'm wondering, does this situation differ from the 2008 crisis that the 2008 crisis was caused by people borrowing so much money to buy houses and could not afford to pay it pay which led to banks owning so many houses without being able to sell these houses and bankrupt versus evergrand borrowed so much money to build houses but could not finish and sell houses to pay money back to their invertors right ?

I liked your style of presentation. Most KZreadrs talking about China are on either end of the extreme either praising China to no end or completely bashing it. I found this relatively objective and spoken based on research. Well done.

Should watch Asiannometry's video on Evergrande's rise. Very interesting watch.

China's real state sounds to me like 2007 Spain multiplied by 50. It would be really interesting if you made a video about that and how it compares to China's real state situation today.

@rcbrascan

4 ай бұрын

The situation is not similar, in Spain the banks were loosely lending out money to developers and buyers who couldn't pay it back when the market turned while in China, the buyers had the money to pay for it but the developers didn't have enough money to complete the construction and had to borrow from investors.

@Tounguepunchfartbox

4 ай бұрын

@@rcbrascanalso the local governments didn’t have the money to pay for it either.

@hamzamahmood9565

4 ай бұрын

It's 2008 financial crisis multiplied by 50

@creepersonspeed5490

4 ай бұрын

​@@hamzamahmood9565if you look at the percentage size, it's not comparable. this is a blip in the Chinese economy

@testacals

4 ай бұрын

@@hamzamahmood9565 Not really. This is much smaller and much more local.

wait, they still haven't gotten that ship out of the SUEZ canal?

@Toonrick12

4 ай бұрын

That's EverGREEN.

@schonsense

4 ай бұрын

lmao, I came here to say this. I get them swapped murphy's law style.

It could be interesting if the government takes on Evergrande to be another state entity for building public housing to help with the extreme housing unaffordability.

I've looked at many graphs in my career, but that graph from Reuters made me choke on water.

I want to hear more about other big companies in China like Country Garden and Vanke to see where the other companies go

I would like you to upload every sat please and thanks

I'm not a financial savvy, but isn't using new customer's money to pay off old customers is the definition of MLM systems? Ir is that the default in the real estate building industry?

@pseudocynic1

4 ай бұрын

That's more like the definition of a Ponzi scheme which is fraud and illegal (e.g. Bernie Madoff). A Ponzi is an investment structure whereby an artificially high return is created for early investors using money from new investors while the sponsors steal from the investors' pool of capital. New investors are attracted by the high "return" until the structure eventually collapses from too many investors demanding their money back. At this point the con artists (sponsors) typically disappear. MLM is a pyramid scheme which is an unethical business model (e.g. Herbalife) but not strictly illegal because there is an actual product involved that is theoretically being sold to customers. It relies on multiple levels of distribution to flog a product with the proceeds being distributed up the MLM structure. This incentivizes the sales force to recruit new salespeople under them because they take a cut from every sale made by the poor suckers below them. MLM organizations all look like a pyramid, hence the name.

@Akixkisu

4 ай бұрын

The mechanism is different, the customer of an mlm is the agent who also tries to resell part of the product.

Good. Thanks.

Massive supply of housing would be a nice problem to have here in the west....

Is part of the issue that Evergrande under charged for the cost of these properties to build? Rising cost of building materials would have eaten into their profits but if I was going to build a 1000 unit property and I sold all the units, in theory would know what my cost/sales would be. Or did they over extend and keep building beyond what they had sales for.

Evergrande story is gold for creators of financial content and speculation.

@Cheesecake99YearsAgo

4 ай бұрын

😂

When you started with “ladies and gentlemen” I thought you’d say “we got em” next :D

if you don't have that much reserve, stick to residential complex. That way you only need to finish off the houses that have been purchased/ financed and leave the lot empty (or some foundation) for the ones haven't been purchased. You can't do that on an apartment, because you have to build all the rooms and floors while slowly selling some of the units. It is harder to sell the whole inventory or unit and gather enough cash flow to pay back debt interest and cover 3-4 months' worth of materials. You might get away with delaying the payment to 6 months but still gonna give it a bad look and fewer suppliers will continue to supply.

Chinas real estate sector could be an entire college course.

Does the court ruling force the company name to change to "Grande for a While"?

Finally, an honest influencer! Great video. And it's not a capitalism propaganda. Good job.

Thanks for being rational as always

Can you make a video of your take on Nvidia? Based on research into the company, is it speculative or an investment? thanks and keep up the good work! :)

"Gonna be quick" and I peeked at the video time.😂

11:47 Within cells interlinked

Wait Colton has a channel now?

Optimistic about getting balanced and sensible updates on financial topics from you. Pessimistic about much of the rest of the internet.

@the plain bagel would love a video from you about the analysis of paypal atm. Because fundamentally it seems to be doing extremely well, but the stock price continues to fall

The receivers will use remaining money for fees etc. customers won’t see a penny

Just like some companies change their name like GM got changed to MLQ. They should change their name to Not So Grande.

Nice

Maybe i missed it in this video but could you make a video of which US stocks might be affected by this situation the most

2:51 goddam that chart is striking. That is hardcore dataporn

It's just baffling how such huge companies can mess up so much

@brettcyr7426

4 ай бұрын

It's simple. Traits that cause the largest growth (extreme risk tolerance, leverage, etc) and thus create the largest companies are the exact same things that kill them when economic environments turn.

@pseudocynic1

4 ай бұрын

Scale does not equate to the integrity of any business, especially in a communist country where corruption is endemic to politics and therefore the economy. It's all about transparency, China lacks the checks and balances of democratic political systems and capitalist economics.

I think it probably makes more sense to think of China as closer to Japan in the 80s/90s - huge real estate bubble, export/manufacturing driven powerhouse, technological lead in certain areas, and demographic headwinds. I agree that China's ability to force its banks to lend means any kind of "Lehman moment" is very unlikely, the 2 questions that I have are how much pain is "too much" as it tries to transition to a consumer/demand driven economy (which necessarily hurts its ability to repress wages and maintain its export/manufacturing edge), and whether it will start backtracking on national security above all.

@devilex121

4 ай бұрын

Looks like someone also reads Michael Pettis

@BigHenFor

4 ай бұрын

You're right. China's leadership weren't aware of the perverse incentives they were creating. And they may have to revisit their priorities. Financialisation has to be controlled carefully not to bolt, and to become a weed, chiking out other more sustainable growth.

I always come back to get the 'nothing is going to change' take from the plain bagel.

does anyone know if evergrande owns properties in canada? Or other non-chinese markets

LEAVE CHINA UPDATE ALONE I LOVE HIS CHANNEL

I would love to see a video about the influence of “naked shorts”.

It's wild how China and Canada are on polar opposite ends of a real estate crisis. The former has so much excess property their throwing it away, while the latter has so little that landlords can name their price.

@thewhitefalcon8539

4 ай бұрын

Canada should invade China

@biguattipoptropica

4 ай бұрын

It’s not as different as it seems. Canada infamously has a lot of speculators, flippers, and mostly empty buildings. It’s combining the Chinese real estate issues with the American real estate issues, as in landlords are price fixing apartments and leaving them empty rather than lower the price. I imagine if the economic downturn continues we’ll see how much of Canadian real estate is attached to money laundering. A professor at one of the prestigious universities here looked into it… and I think he said Vancouver and Toronto real estate markets are potentially above 10% controlled by money laundering…? If you google “canadian real estate market money laundering” it should come up.

@ChucksSEADnDEAD

4 ай бұрын

Right. But in most countries people are trying to move to existing economic centers which don't exactly have a surplus of empty lots. In China, they're building in the periphery of existing cities because according to the growth numbers, those construction projects would end up in the middle of expanding economic zones. Because of the risk, in Canada (and most countries) construction is done where the demand is (or will be according to high confidence projects). In China, a lot of construction was done expecting demand to be there much later down the line due to inevitable growth.

@thewhitefalcon8539

4 ай бұрын

@@ChucksSEADnDEAD I suppose it's not that crazy. I personally wouldn't want to be the first to move into a new area... but speculators would... so I'd end up paying them exorbitant rent for taking the risk for me... hey that's just capitalism

@absolutefolly2011

4 ай бұрын

Cause the Chinese are fleeing china, with their assets and themselves..and going to Canada.

I heard in a radio story this week that China is "suggesting" that regional governments purchase distressed developments to turn them into affordable housing. The article further commented that since the regions that these developments are in were often involved in financing the initial development, it is not clear how effective this strategy will be. I hope you, or someone similarly thoughtful, does an update on the situation Is this plan feasible? How much demand for affordable housing is there? If Russia's economy is growing more tied to China as the war in Ukraine drags on, are there implications there?

Interlinked

Could you make a Video about financial Systems in Africa or the middle east? or in General about how developing countries are developing financially?

Can you do a video about Litium investing, it been like a rollercoaster and it is the future so what is happening?

When I lived in China I stayed at an Evergrande apartment complex. It was mostly empty.

@moart87

4 ай бұрын

Seems creepy!

@alext1723

4 ай бұрын

Paradise! No neighbour's to piss you off!

As you point out the hk court dont really have jurisdiction over mainland, so this judgement is more or less just posturing for investor to see. As for the assets, likely they'll just be "absorbed" by the Central government

its been a while bagel!

Thank you for the FACTUAL reports rather than just "China bashing"

I think Richard is right that this will not have the same global effect as the 2008 crisis. But I also think we should consider that this is not the end of China's real estate debt crisis, but the end of Act I. Evergrande is not different in kind from other Chinese developers, and Country Garden, which is the largest developer, seems to be facing similar problems. Just about all of the big ones had reached the point where they were borrowing and relying on presale income to pay down existing debt. There's a huge number of residential high-rises that have either been demolished or are sitting unfinished because the developer can't afford to finish them.

A developer finishing one project with money from the next is a massive red flag. It means that the money you originally took for the project was not enough and you are sitting on a loss, likely to runaway build costs. When I worked in banking we had mechanisms to avoid that, which were quite bureaucratic but prevented such problems from ever going big. Of course the problem is here also the systemic fault that the developer could even take the customers money (that was often provided to them by loans) before being finished. That's actually what banks are for, financing developers until the customer pays for the finished building. And banks would have looked at the books I am sure. China has a lot to learn

Is it “royters” or “rooters”?

The slight Canadian accent is cute 😊

Plain Bagel the kind of guy that uses Turn Signals in Grand Theft Auto! 😂

As if china will follow a HK ruling. No way they follow through with liquidation.

@TAS_CNX

4 ай бұрын

The CCP absolutely might do that, it would likely finish off Hong Kong as a place to do business though. Given the kind of policy decisions that are coming out of Beijing it would not surprise me.

@awsblacknight6956

4 ай бұрын

@@TAS_CNX Don't you mean it the other way around? Anyways, HK is rich because it acts as a tradeport for mainland China, and as long as China remains a dominant world power, it won't be going anywhere.

@BearMeOut

4 ай бұрын

You all assuming they will hink logically based on presented fact. CCP didn't work like that, how do you think this was allowed to happened in the first place?

So no Evergrande EV coming?

So, the impact to the regular Joe, or regular Lee, is far bigger than I thought 3:24

What does the term, 'end of China' mean? Without a definition, you can't say that this situation is not going to mean the end of China. Do we say the end of China has arrived when it decides to change its name, when countless millions of Chinese people starve to death when the Chinese stock market falls to a particular level, when the US nukes a particular percentage of the country, or when the CCP is effectively dead? What we are seeing is a collapse or end of the Chinese system of what we could call communist capitalism. This is a hybrid form of both communism and capitalism of a similar nature to that which many socialist political parties have been advocating for around a century. In the West, this goes under a few different names which mean more or less but not exactly the same thing. These are socialism, social democracy, democratic socialism, national socialism, fascism, and Fabianism. What they all have in common is the centralization of power using the power of money, the eventual end of all human property rights including private transport, and the private ownership of all property. The individual human being is reduced to a sacrificial financial commodity that has virtually no power or sovereignty over its own life at all. China and the CCP have yet again demonstrated that this kind of thing always ends in tears, poverty, and early death. Human beings quite literally don't work this way and are not designed to do so. They love to cooperate with each other for their own common good but this will never sustain itself at a greater level. People work hard, innovate, and create for their own personal status and security not for the state or the corporation. This is why the CCP can not save the Chinese economy. The Chinese people have finally realized that the CCP has basically been taking the piss out of them. They have been working very hard for nothing like the animals on Animal Farm. Now they find that their state has nothing but contempt for them and what they thought was their own wealth or property is nothing but an illusion. This realization will permanently break both the backs and hearts of the common people which are the nation's only real asset. Free people and their geography make nations, not governments or the self-appointed and self-interested elites that control all of them. These are the destroyers of worlds, while the people are charged with rebuilding from the ashes that they invariably create. The good news for the Chinese people is that the solution may be easier to find than they may think. They first need to destroy the CCP and then start to rebuild with what they have. I suggest that they allow the Taiwanese government to take over the rebuilding which will take at least a generation to achieve. The sooner this happens the less that they will need to rebuild. If they wait any longer the CCP will soon start to sacrifice them in ever-increasing numbers as it has before. China can be saved but the CCP can't and won't save it, only the Chinese people can do this.

Not sure how this guy ended up in my feed, but how do you come up with the name “plain bagel” for a finance channel?

based and no private property pilled top xi

China: “We don’t want to let foreign institutions be involved with our financial systems.” Foreign citizens: “Thank you so much.”

@iwishiknewhowto1228

4 ай бұрын

Let’s just USA bubbles doesn’t burst since we have learned nothing from 2008

I was not expecting that image of Linda chan.