Who knew building ghost cities would not be profitable?

@rlkinnard

2 жыл бұрын

@@Fishmans Sure, if you can borrow money and not pay it back, you can do remarkably well.

@psychoaztecs

2 жыл бұрын

pretty much its a large organized Ponzi Scheme

@gordonlam2757

2 жыл бұрын

geeze I would of never figured it's not profitable ..LOL But looks sooo pretty.

@maolo76

2 жыл бұрын

@@psychoaztecs how is it a ponzi scheme? Buyers pick out a flat in a building and put down payment on it and wait till it finishes building before moving into flat. It's no different than New Home Construction in the US. Buyers pick out a lot and put down payment on new home usually 20% then the builder promise to finished building within timeframe. But there's a clause that says in the event unforeseen situation...like the pandemic. The delivery time maybe extended for however long. In Evergrande situation.. The pandemic, lockdowns and supply chain issues have cause the company to stop construction. Eventually bills mount up and the company unable to pay it because no money is coming in.. I see this happening in the US future because supply chain issue causing delays in delivery.

@billyhe2724

2 жыл бұрын

The developers in China have different decision making model. In China, it's IF we build it, people will come. The urbanization rate is 60% today. 20 years ago was less than 30%. All of the "ghost cities" you saw 10 yrs ago are now some of the most desirable new districts today. Every 10% of the Chinese population is 150 million people or like 50 million household demand. It profitable when the economy is still growing.

If I owe 300 Billion dollars, the lender is in trouble not me.

@MionMikan

2 жыл бұрын

Unless the lenders are a couple of guys named tony, mario, chris, lorenzo, paulie, silvio, mikey, or gino then your kneecaps are in trouble.

@stefanwolf8558

2 жыл бұрын

Call the bankruptcy court...............................BUT NOT FOR ME!

@lotus630

2 жыл бұрын

@@MionMikan worse... the person is named Xi

@malfiandwiva6588

2 жыл бұрын

Xi you in the next life

@polynesianwarrior2166

2 жыл бұрын

America: hold my 30 trillion dept😂

Building multiple, low-quality properties sold to rich investors as an asset only to be sold later for profit and your average commoner can’t afford to buy them. What can possibly go wrong?

@exudeku

2 жыл бұрын

Gee, they have tons of money, why they didnt bought even an ounce of Common sense

@zurie35

2 жыл бұрын

It could be worse, they could also be unfinished projects with money coming in for future proje... oh wait... they did that too... ponzi scheme.

@BrotherAlpha

2 жыл бұрын

This is exactly what drove the housing bubble in the United States, the one that burst in 2008.

@zurie35

2 жыл бұрын

@@BrotherAlpha exactly, and lets not forget the head of the nasdaq was directly involved in a ponzi scheme !

@CrocodileWhispers

2 жыл бұрын

just like Crypto, you're looking for a sucker that will pay more for it than you did, and if you can't you'll just hold it until you can....

China is fully aware of the Evergrande's financial mess for a long time. They had ignored the corruption of the Chinese property developers for the sake of economic growth. To the 1.5 million Chinese who bought unfinished properties, it's highly unlikely China central government will bail you out. So the road ahead for these people is to continue paying mortgage or declare bankrupt.

@gordonlam2757

2 жыл бұрын

Continue paying for something that isn't complete, you just give a down payment when you purchase a condo, You don't have a mortgage yet, you don't own. So at most you lose the deposit. But why build so many building and none are complete?

@johnji3537

2 жыл бұрын

@@gordonlam2757 It's true at most you lose the deposit. There are many Chinese home and business owners mortgaging their houses and business property for a bank loan to purchase these unfinished property.

@aleksandersuur9475

2 жыл бұрын

Meh at people losing deposits, what happens to debt on all the property sitting empty waiting for future higher prices that are never going to happen? Well, never mind the properties, who is going to pay the debt on them? Interesting times ahead for China as if they weren't interesting enough already.

@tharifdzulfiqar789

2 жыл бұрын

so, its 2008 again?

@iij973

2 жыл бұрын

Except personal bankruptcies essentially doesn’t exist in China in reality, so these homeowners really are stuck in this festering pool of involuntary financial mess indefinitely

Another example of a business building its foundation on an infinite money fountain. The problem with that, is that there is no such thing as infinite money. As a business you should always be prepared for what happens when a revenue source dries up.

@lostinbravado

2 жыл бұрын

There is absolutely such thing as infinite money. What is money? It's a concept. An idea. Are ideas limited? No. But is the demand for money unlimited? No, it is not. If you print an infinite supply, people will lose interest and thus it will lose value. Money is basically just the arbitrary value we've assigned to the things we actually value. Like toilet paper. The toilet paper is worth more than the money. The only thing currency does well is endure. But it doesn't endure forever. No currency endures forever. Diversify your investments. And don't put all of your faith into a single story. Lookin at you, China.

@Eline_Meijer

2 жыл бұрын

Dont think for a moment that this case is a problem in the eyes of the Chinese government, they let it happen for a reason. The Chinese Party is far more clever and sinister then ppl think

@georgesava1

2 жыл бұрын

@@lostinbravado And teach us, what is more valuable than money? Crypto?

@shinji1264

2 жыл бұрын

@@lostinbravado Well then gimme all your money I got some toilet paper for you. Cash only plz no crypto

@johntron3849

2 жыл бұрын

@@lostinbravado exactly it’s a concept that helps us see the line between the economic classes and the rich love to see the line being pushed further and further away (to space/thanks to Amazon workers) from them.

Virtually every business failure story is about trying to expand too quickly, and taking on too much debt. As much as people extol the idiom "If you're not growing, you're dying" you never hear about a business failing because it stayed small, stayed profitable, and never took on any debt.

@curtisw0234

2 жыл бұрын

If you want to win in the business world you either grow as fast as possible or your competitors out produce you out research you and ultimately put compete you.

@ElonHusky

2 жыл бұрын

@@curtisw0234 grow fast without profit by using investors/bank loan ,Nice recipe for disaster

@businessclaud

2 жыл бұрын

Wow, thanks for this comment

@Naijanewz

2 жыл бұрын

China China , i hail thine many houses

@Andrew-rc3vh

2 жыл бұрын

Sailing close too the wind + a covid crisis changed the parameters of the market. It would have worked if it were not for covid.

Those suppliers that waived Evergrande's debts are probably not too happy with their decision.

@Tounguepunchfartbox

2 жыл бұрын

They had no say in their decision lol

@hectoralejandro9883

2 жыл бұрын

@@Tounguepunchfartbox false, the CCP explicitly told them they could choose to waive or disappear. That’s a choice isn’t it 😅

@carlosalleyman374

2 жыл бұрын

@@hectoralejandro9883 Imagine a goverment bailing out a large corprate entity because it's too big to fail

The whole sector is a bubble.

@aajohnsoutube

2 жыл бұрын

Was a bubble. *was*

@E4439Qv5

2 жыл бұрын

@@aajohnsoutube still is, even as it deflates.

@polynesianwarrior2166

2 жыл бұрын

America: hold my 30 trillion dept😂

The CEO of Lowy could play a James Bond film vilain. He would look totally legit.

@Persian-Immortal

2 жыл бұрын

Wait... he's not!

Much akin to the 1920s when people were buying on margin. That ended great.

@t0pz87

2 жыл бұрын

"great" - i see what u did there...

@polynesianwarrior2166

2 жыл бұрын

America: hold my 30 trillion dept😂

@chrisaycock5965

2 жыл бұрын

@吃货小美女 The Great Depression people in the united states were borrowing more money than they could actually pay back to buy stock on the idea it would go up forever. This isn't unlike Evergrande constantly borrowing more money on land they've bought with the idea from lenders that it will keep going up.

@odoimia

2 жыл бұрын

@@polynesianwarrior2166 *debt

"Debt-fueled strategy..." whew, enough said!

Lol I love how these companies can borrow billions and then get bailed out when they fail with no consequences.

@sal88hossain

2 жыл бұрын

they are not going to get bailed out. xi will nationalize all the major business with time. going back to mao era

@1one1won

2 жыл бұрын

Bigger they are harder they fall I'm waiting for China to fall and there is no bailout!

@aldub3848

2 жыл бұрын

@@1one1won if China falls Amerikkka falls too no?

@stefanc4520

2 жыл бұрын

@@sal88hossain that's still a bailout lol

@nicedurians

2 жыл бұрын

@@stefanc4520 thats to avoid the normal employees from losing their jobs. Trust me. China will punish the executives hard

At some point this mirage bubble must reach bursting point for reality to strike home.

@Peter-je6td

2 жыл бұрын

The problem is even debt can be sold they just put a date of 10 or 20 years on it and say put interest on the debt so if the debt is 10 million they will add on 10% extra so now the debt to be paid is 11 million for example and someone will buy it looking to make profit of 1 million lol its crazy

@aleksandersuur9475

2 жыл бұрын

@@Peter-je6td Evergrande bonds trade at like 20 cents on the dollar so your estimate is a bit optimistic.

@Peter-je6td

2 жыл бұрын

@@aleksandersuur9475 i know it was an example and if it comes to it the ccp will buy the bonds via a state owned company just to buy its self time to pay back all the debt rinse and repeat like paying your self its a way of just delaying inevitably they get to change payment date with every new change of hands

@polynesianwarrior2166

2 жыл бұрын

America: hold my 30 trillion dept😂

@pr0newbie

2 жыл бұрын

@@Peter-je6td yeah and hopefully that works out for the world.. Investors in China, especially those of SOE, need to be wary of this.

**PHONE RINGS** -"Sir, he bought Evergrande stocks" - *Bogdanoff* : "DUMP IT"

@roobertmaxity

2 жыл бұрын

DÖMP IT MÖRE

@qhuizatlantis8484

2 жыл бұрын

I can hear the voice

When I was on the bullet train from Shanghai, I noticed how fast they were building every where. Even my mom's home city looks completely different, massive round abouts and roads I never thought would ever be built.

@wyw201

2 жыл бұрын

Are these new construction works backed by debt or equity?

@BGRUBBIN

2 жыл бұрын

@@wyw201 most likely debt, it's a farming town that's been expanded slowly over the last 25 years. I was back in late 2019.

@wyw201

2 жыл бұрын

@@BGRUBBIN What led to municipalities collapsing during 2008 in the US is that government infrastructure debt is backed by credit default swaps with financial firms. As such, when Evergrande went down, the fear is that it will drag investment banks and funds down as well. Hope China regulates the trading and formation of derivatives on government debt and bonds.

@BGRUBBIN

2 жыл бұрын

@@wyw201 just like America did, thanks for the info

@hughmungus2760

2 жыл бұрын

@@wyw201 As far as Im aware, this kind of financial gimmickry is banned in china after the 2008 crisis

9:37 ... I would love to know who Lulu Yilun Chen sold $11 million worth of Evergrande shares to. Who would buy shares in a sinking ship???

The Chinese government actually forced the CEO to sell his yacht and artworks to pay for the company debt. Image that happening in US lol

@kevynfernandezdelarosa1225

2 жыл бұрын

We can only imagine :')

@MrWackozacko

2 жыл бұрын

Sometimes China will do something that is painfully obviously needs to be done. I paused immediately when i heard that and came looking to see if anyone else did

@howconnie

2 жыл бұрын

We can only dream 🛌

@TreesPlease42

2 жыл бұрын

It's just a distraction from the scale of the theft. Imagine robbing an entire grocery and having to return only the broccoli.

@kolboch

2 жыл бұрын

@@TreesPlease42 well what happened during bailouts in the US? I think even broccolis are still missing... Proabably those in charge would be in trouble now right... ? Right?! Oh hello JP Morgan, Goldman Sachs, Bank of American, and Morgan Stanley :) Welcome to debt driven economy. Just look up the charts of wealth inequalities, how pandemic and further "money printing" makes it even worse. Still making a ceo pay for that is something that just sends a message, a very important one, that if you can't manage your company, you will be the first one to pay for that. That is called responsibility.

Tips for business owners: crisis often comes from overconfidence rather than conservatism.

@hunam1464

2 жыл бұрын

Both have their own issues. Even though a conservative company may appear functioning, it fails to take advantage of opportunities. You need balance.

@Dayvit78

2 жыл бұрын

Chinese used to be the most conservative businessmen along with Japanese. At least that was their reputation.

That company was the first of many who have gotten into financial trouble there and I feel bad for the people who purchased property unseen and that is terrible and a disaster in the making.

@ryaeon9793

2 жыл бұрын

who cant see that coming?

@rext8949

2 жыл бұрын

Mostly investors, small and big trying to make a killing on margin.

@RoySATX

2 жыл бұрын

Feel bad for those who purchased property, yes, but they are just the first to feel the pain. Soon all of us will suffer from the outrages greed and corruption of the politically powerful, people the world over are about to see their quality of living drop by half and it will be decades before we scratch and crawl out of this mess.

@madsam0320

2 жыл бұрын

Most people cannot afford those apartments, only speculators who brought the apartments and left them empty.

@polynesianwarrior2166

2 жыл бұрын

America: hold my 30 trillion dept😂

Those Ghost cities are apparently already paid for my the people who bought properties as an investment so it could be their second or third home. The only problem is people who actually want to buy a house to live in can't afford one. Similar situation in so many parts of the world right now

@patriotsnation9224

Жыл бұрын

Not really, people in China paid for "real estate" that was not yet built, whereas in most other logical countries we do not buy anything that is not complete.

@debendragurung3033

Жыл бұрын

I don't think so. These ghost cities are actually what have caused the crisis. If they have all been filled with thriving community, none of this would have ever happened. And also the government would have bailed them out if they ran into financial trouble. Apparently these ghost cities were built for all the wrong causes. First it was government themselves who supported their project and flooded them with loans. Of course then government was rich and loaded, never thought of it through enough. Then it was the individual real estate investors who began putting down payment before even the construction began , thinking they might sell it to the real settlers at higher profit. And surprisingly no one showed up. Why would they?? Turns out you can't just build a city and expect people to live. Besides when building new housing infrastructure, the focus should be on the people who would live there and call in their homes and not the people who would seeks as an investment. Companies should have focused on building someone's home and not their real estate portfolio.

This is what annoys me. I remember those protests. Our media made it seem like it was people rising up against the gov. When in reality they were protesting a company.

@719Flowers

Жыл бұрын

Who’s our media?

Bloomberg, the company that tell you the business news after it happened.

5:48 The heart of the issue is it is too difficult for some people to obtain and keep adequate housing.

There's a mistake property developers always seem to make even where I'm from , There's always an assumption that land /property will always appreciate, which More often than not is true but they over estimate the appreciation rates time and time again .

@SRR-rh7id

2 жыл бұрын

I've always heard that real estate is the best investment, because it always appreciates.

@TheBooban

2 жыл бұрын

@@SRR-rh7id it does. Most rich folks made money in real estate because it always go up. In the long term.

@SRR-rh7id

2 жыл бұрын

@@TheBooban is real estate a superior investment as compared to dividend stocks?

@7Bobby7

2 жыл бұрын

@@SRR-rh7id real estate can go up by like 200% over ten years which is not normal but for growing cities it is and if it goes up by 2000% there's a societal issue as people's income rarely rises at the same rate...while something similar can happen in stocks and its no problem if the business is really growing and your not in a bubble... both have their risks but quick money is stocks and slow money

@rogergeyer9851

2 жыл бұрын

Brian Mwaura: That's a big part of what happened to banks in the great recession. Though the vast majority of real estate in real (inflation adjusted) terms will LIKELY end up appreciating over time, there can definitely be steep downsides in the short run, in economic hard times. People running real estate empires SHOULD know this -- there's lots of data showing it out there.

“Everything in Evergrande belongs to the party and state ( including your interest payments and principles) “ - Hui

@sprague49

2 жыл бұрын

And now it's debt belongs to the party too.

@AbrahamSamma

2 жыл бұрын

Like poetry.

@faranocks

2 жыл бұрын

@@sprague49 what debt

@johntalak5453

2 жыл бұрын

@@faranocks confusing

@BGalligan65

2 жыл бұрын

​@@johntalak5453 I'm going to reply to this by giving a "like" here, because the current counter is at 88, the lucky number for Chinese.

I saw this coming a long time ago, empty apartment buildings all over the place I said to myself I hope they know what they are doing, I guess not.

@intheshadow1200

Жыл бұрын

And 8 months later ..... the crash!

These Bloomberg Quicktakes are excellent

@bukkakeftw6205

Жыл бұрын

Yeah great story, SVB, first republic,credit suiss these Chinese banks are collapsing one by one.

Evergrande has had its hands in tech startups that ended with the startup going into insolvency and the persons in charge of the startup complicit in securities fraud, it's a pattern you can't ignore once you start pulling the thread. These 'cities' if they are in china, they are empty cities. Numerous partially built or fully built cities exist in China that are either mostly empty or entirely empty save for chinese security personnel who chase people out of them.

@hotchi1566

2 жыл бұрын

1990. The Economist. China's economy has come to a halt. 1996. The Economist. China's economy will face a hard landing 1998. The Economist: China's economy entering a dangerous period of sluggish growth. 1999. Bank of Canada: Likelihood of a hard landing for the Chinese economy. 2000. Chicago Tribune: China currency move nails hard landing risk coffin. 2001. Wilbanks, Smith & Thomas: A hard landing in China. 2002. Westchester University: China Anxiously Seeks a Soft Economic Landing 2003. KWR International: How to find a soft landing if China.. 2004. The Economist: The great fall of China? 2005. Nouriel Roubini: The Risk of a Hard Landing in China 2006. International Economy: Can China Achieve a Soft Landing? 2007. TIME: Is China's Economy Overheating? Can China avoid a hard landing? 2008. Forbes: Hard Landing In China? 2009. Fortune: China's hard landing. China must find a way to recover. 2010. Nouriel Roubini: Hard landing coming in China. 2011. Business Insider: A Chinese Hard Landing May Be Closer Than You Think 2012. American Interest: Dismal Economic News from China: A Hard Landing 2013. Zero Hedge: A Hard Landing In China 2014. CNBC: A hard landing in China. 2015. Forbes: Congratulations, You Got Yourself A Chinese Hard Landing …. 2016. The Economist: Hard landing looms for China 2017. National Interest: Is China's Economy Going To Crash? 2020. Economics Explained: The Scary Solution to the Chinese Debt Crisis 2021. Global Economics: Has China's Downfall Started?

@pappachan7267

2 жыл бұрын

@@hotchi1566 it could be the beginning of the end rather than the end of the beginning

12:10 I went to the same elementary school as Chen. I remember in the early 1990s when I was a student in the school, Chen made an generous amount of donation to the school, in return the school required each of us students to write a personal thank you note to show gratitude to him.

@4evertrue830

2 жыл бұрын

You are just making that up no one believes you.

@MeiinUK

6 ай бұрын

Are you joking ???..... What are the chances ???.....

@ziiiim

6 ай бұрын

@@4evertrue830 you don’t need to believe me but I’m telling the truth

@ziiiim

6 ай бұрын

@@MeiinUK I didn’t expect to see him again. He is a low-key guy you rarely see him taking any interviews

"Biggest Financial Headache" someone is forgetting fast train system ;p

@accountname1047

2 жыл бұрын

And local government debt vehicles

@Fire-ci4se

2 жыл бұрын

Chinese highspeed rail is actually overall profitable , see reports by worldbank, marcopolo etc. All these doomsayers just focus on a couple of unprofitable routes which government subsidizes and extrapolate it .

@infango

2 жыл бұрын

@@Fire-ci4se 900 billion in debt with 24 million loss per day must be a real bonanza !! very cool !

@Fire-ci4se

2 жыл бұрын

@@infango Read the world bank report if you actually care about the debt. It is not that big a deal . 24 million loss a day is like negligence for China's 15 trillion dollar economy

@leeo268

2 жыл бұрын

HSR are state run company and owe debt to State bank. It is CCP borrowing from itself or printed money. They can forgive their own debt to themselves easily.

This is a real bad disaster for China. Nearly 6 million people lost all their money and soon become bankrupt and homeless. This is a nightmare scenario. I hope they will find a solution to this otherwise it will be years of hardship for the people of China.

I really like how the government didn't want to bail them out. All companies need to be held responsible for their own bad decisions and not the taxpayer.

@Tounguepunchfartbox

2 жыл бұрын

They’re bailing them out behind the scenes. Chinese state has many ways they can direct money and alleviate debt.

@deleqtronica8733

2 жыл бұрын

@@Tounguepunchfartbox exactly, that’s because all these corporations the state has a hand in it. China the country is basically a company, like a Super Amazon with nuclear weapons.

@lucastonoli3256

2 жыл бұрын

You're kind of clueless. The government got them there, nothing they did was possible without the budget assignment system of mainland China, the companies got money for their activities directly from state-controlled banks, the stuff they made got sold to big companies than then sell to end-users. This is a full circle back to government and it will get bailed, just not directly.

@user-bz5yu1hg3x

Жыл бұрын

You are right .

Oh well such is greed speculation and fear of missing out ... well they didnt miss out ... they got what was coming ... no sympathy for people who huddle into these concerns only to get burned !!!!

They all seem savvy until the bubble burst 💥

This gonna end badly.

This happens. Usually once in a 3 decades

I want the narrator to recite the eulogy at my funeral

Came here for Evergrande......stayed for Rebecca...

@sevenhelmets

2 жыл бұрын

Her accent and way of talking, it’s hard to explain, but it’s just so nice. I could listen to her talk for hours.

@bandman1718

2 жыл бұрын

shes hella pretty lol

@1patula

2 жыл бұрын

I scrolled down up here looking if anyone noticed!? So I was glad I wasn’t the only one. I can definitely confirm, Rebeca is ultra hot, not even trying hard:)

@kikyoass

2 жыл бұрын

Wonder what ethnicity she is 🔥

The construction on Heinan that was deemed illegal by authorities most likely serves as a warning to the investors behind the project, likely offshore investors, that they should be careful and not demand too much or their assets would be deemed illegal.

I have been trading for about 6 months now and just about every trade backfires and slaps me in my face. Nearly impossible for me to catch more than a few points . I try to do top down analysis but it doesn't work for me . I say to myself, clearly I'm in the 90% that lose money, so I open a demo account, do my analysis, then take the opposite of what I would normally take and get the same result. I'm starting to feel hopeless, any advice for a struggling trader?

@georgecooper8750

2 жыл бұрын

Your problem could be your stop loss is too close or you're watching your trades too much. Place it and walk away. Or you could just give up, trading isn't for everyone.

@helenoliver4838

2 жыл бұрын

Don't listen to him, don't give up. Trading takes time(months, even years) to master, even the pros learn everyday. Never the less, if you lose money no matter which side you take, maybe you need to look at how you are managing active trades rather than how you are entering them. My advice, find a mentor . And also, try incorporating the use of oscillators, Bollinger and pivot points into your strategy. And most importantly move to higher TFs(4h or 1D preferably), you'll thank me later

@henrygarcia1792

2 жыл бұрын

You're correct, I don't lose money every single trade, but my main problem is trying to let my runners run. Very rarely do I catch big moves . Instead they go a few pips in my direction, then go against me if when I try holding them. Also my entries could use a lot of improvement. A mentor would be amazing, but getting one is easier said than done. If it's not too much to ask, do you know any legit ones?

@helenoliver4838

2 жыл бұрын

To be honest, I’ve loss greatly on trading too but I found out that the only solution at my situation personally was to get a professional trader who managed and controlled my trades. You can get one too. For months now I’ve been trading with Vivian Klaine Morgan and I can say I’ve made more than my loss now.

@devdaniel3225

2 жыл бұрын

I think I have seen this name on a trading forum before, And how may I contact her if that isn't too much to ask

The chinese economy grew on credit and now all that debt is starting to have an impact in many sectors. Lack of oversight, rampant bribery and corruption and other shady business practices have taken its toll. Local governments are heavily indebted as well that they have cut the salaries of civil servants. Everyone just got greedy and wanted a piece of the pie. On top of this their zero covid policy is hurting the economy as well by suddenly disrupting economic activity wherever an outbreak occurs.

@maxdc988

2 жыл бұрын

Which major economies didn't expand on credit ? This is not peculiar to China. Here in Malaysia, corruption is way more entrenched in public and private sectors. Are you surprised that organized crime bosses had become billionaires here and rub shoulder with highest level of government instead of rubbing shoulders with prison inmates? Most of the procurements/borrowings in large companies here were facilitated thru kickbacks. And I am pretty sure all these are happening in the whole of Southeast Asia and throughout the world. To deny is because of ignorance.

@petepowaaa

2 жыл бұрын

@@maxdc988 Yes most economies expand on credit, but most of them did eventually grow to dominate a market (e.g. japan with medical equipment and US with semiconductors). I can't think of a healthy, innovative company in china that isn't software related.

@alainw77

2 жыл бұрын

@@maxdc988 you don’t see major foreign companies accumulate this much debt like Evergrande has. And expand into creating businesses that has nothing to with its property business. Property development in china accounts for 30% of its GDP, what other major economy has a sector dominate this much? Local governments in china have accumulated $4 trillion in debt in just the last few years and their main revenue source is from property sales, they are not even allowed to levy taxes. How is that sustainable?

@Wulfcry

2 жыл бұрын

@@alainw77 So how great is the difference from province to province that this has kept going without the government intervening that the country got overbuild on real estate.

@davidhynes

2 жыл бұрын

That is why the CCP went after all the rich because they are debt-ridden.

Rebecca Choong Wilkins. Absolutely gorgeous.

@merceywatts5118

2 жыл бұрын

Whatever dude. You really have low standards then.😂😂😂

@Ryancelot

2 жыл бұрын

@@merceywatts5118 its okay more for me

Chinese government assuring that this is not a problem for the world. I wonder where I have heard that before?

wow, at 4:35 look like NOBODY living in those buildings. I wonder how badly they were built in the first place.

Build building that no one wants to live in? Well that's a recipe for disaster.

this is like 2008 all over again

@trutharrow5311

2 жыл бұрын

For india it's 2008 forever

“This is a market event, it should be handled in market oriented way”

Frankly, I couldn't care less about financial investors' woes. In the end, their speculations are what drive the economy to bad places. But I worry about the common people who suffer as a consequence of those speculations. Investors don't want the governments to interfere but it is the lack of control the real problem because the market is unable to regulate itself.

我是93年生人，年轻一代恰逢计划生育，独生子女成长于房地产在中国的疯长期。现在的年轻人父母老人名下都有多套房子，我一直坚信泡沫终会破灭。但是我们不能否认房地产在中国经济史的历史使命，它承托了中国人逐步富裕的过程。现在，是如何抽身而出的问题。给他点时间吧。

@Tounguepunchfartbox

2 жыл бұрын

I think the question is if we see a massive crash in real estate or a long and protracted stagnation of the economy. My guess is we see a significant slowing similar to Japanese crisis. Hopefully not a crash and fortunately that looks unlikely.

@ismaelpediten3306

2 жыл бұрын

Can someone translate this to English?

No one is talking about the government’s strict policies that are affecting evergrands market and leading to its failure rn. Closed boarders , restricted investment from foreigners and foreign businesses in China. All this is part of why evergrand is defaulting rn and no one’s talking about it 🤦‍♂️

@pr0newbie

2 жыл бұрын

That's because those aren't the main issues. It's the 3 red lines to curb the debt crisis, CCP over-exuberance at their successes of handling covid 19, and need for capital to flow into more innovative and national security initiatives that have caused this.

If this were in America the government would immediately bail them out with the taxpayers dollar and allow them to keep ducking up, props to Xi for keeping them accountable

where are any details at all?

This is a case of GREED

In this era where we wake up to changes,it is very much advisable to have a means of multiplying your money so that you won’t wake up stranded and confused.

Music to my ears!

Basically the 2008 crisis all over again, people borrowed money but can't payback.

Incompetence and Greed..... Not the best combo.

The Chinese government NOT bailing out risky or incompetent behavior, imagine that. We could learn a thing or two from the Chinese!!!!

@themasterofdisastr1226

2 жыл бұрын

Lemme guess: If your bank went bankrupt, you'd want a bailout...

@SoCalFreelance

2 жыл бұрын

@@themasterofdisastr1226 FDIC protects deposits. There should be no protections for the 'C' suite's immoral, risky, unethical behavior.

280 cities? How many cities are in China?

@aesyamazeli8804

2 жыл бұрын

687

@xixi1x34

2 жыл бұрын

@@aesyamazeli8804 :0

Mr. Kyle Bass was 100% correct again.

the video about Evergrande's 100 billion in 17 mega Disneyesque amusement parks that are now half built and never will open, was a mind blower. In 100 years they will make for some interesting ruins.

They keep calling this a headache, but it’s a malignant tumor.

Wow! This was very interesting… 2-3 months ago

Could you swap USA debt with Evergrand debt?

You should invest in India. Things are slow here, but being a democracy and an open market we don't build ghost cities.

@rohitghali

2 жыл бұрын

Really? Go to Hyderabad and see. Nothing is occupied fully, yet construction on full swing. China's ghost cities was what came to my mind when i saw this mess here. Hyderabad real estate is in a bubble. Not a huge one, but it is growing into a huge one at a very fast pace.

@trutharrow5311

2 жыл бұрын

Invest in what indian toilets?

The whole Chinese economy has a bubbled up, inflated debt situation, about to go off, it'd be a miracle if they can save it from popping!

@jackbarrie6007

2 жыл бұрын

Because there is not enough substance to the whole of china or there industries even the people have very little substance nothing in the country is built with substance and integrity it's all false😖😖😖😖😣🇦🇺

@erickariuki6842

2 жыл бұрын

It's the holder of most of US debt and developing countries, what do you think will happen????

@rext8949

2 жыл бұрын

The USA has the largest domestic debt and accordingly comes to a halt periodically.

@erickariuki6842

2 жыл бұрын

@@rext8949 China has the biggest Economy in the world and a growing middle class of 400 mil. It's the largest exporter and importer of goods and has a population of 1.2 billion. It's the largest trading partner of most countries. Instead of hoping for a global catasteophy, why not a change in government???? When CCP and PLA leadership falls then that's fine.

@kristoffer3000

2 жыл бұрын

Western media has been saying that for over 30 years, it's never been true.

I really like how there's no apparent angle here. It really is just a video trying to explain an emergent situation in another country.

If my home value was halved it would mean nothing to me, would not effect me in any way. That's today, not 30 year's ago and certainly not the case if it wasn't completely built. It's unimaginable to me the horror of knowing the money I had saved was lost either in financial products or an unlivable home I purchased.

To be honest, while I hate the Chinese system especially in terms of human persecution, billionaires are not exempted from the rules unlike in most capitalist states

@warnpassion

2 жыл бұрын

In China, nothing else is bigger than CCP. CCP = China and China = CCP.

Although China has questionable practises, i do appreciate that they are not bailing out Evergrande. Reminds me of a similar thing in the 2008 western world...

@kartikbisht3453

2 жыл бұрын

they are makings things even worse by not bailing them out

@trolllovindaddy

2 жыл бұрын

@@kartikbisht3453 how could you elaborate? Because this bubble has to be burst at some point right? And this is the only way for real estate prices to go back to normal

@adamdin6243

2 жыл бұрын

@@kartikbisht3453 for sure, but the market can't have this safety net of control that is the government. THe 2008 crisis was a giant wealth transfer of tax-payer dollars. It shouldn't be the governments responsibility to bail out greedy CEOs.

@kartikbisht3453

2 жыл бұрын

@@trolllovindaddy the construction sector is one of the core sectors that drives the economy, for example ssectors like cement steel and nbfc's are completely dependent on the real estate/construction sector and all these setors run on credit lines. A company like evergrande defaulting will lead to tens more defaulting and this will lead to banks failing and that is a red zone for a country

@animatedarchitecture

2 жыл бұрын

@@adamdin6243 it is still the thousands people invested in the company (who purchased properties) who paid the price of CCPs new regulation not just a single CEO...

I thought Credit Crunch was a breakfast cereal….. As the old saying went, if I owe you a thousand bucks, you’ve got me. If I owe you a Million dollars… Ive got you…

Sounds like a bunch of real life GTA villains. 😅

Reading about people grabbing multi-figures monthly as incomes in investments even in this crazy days in the market, any pointers on how to make substantial progress in earning? would appreciate 🙏🏻

@christinak1114

2 жыл бұрын

You really need to have a brief analysis on what you wanna invest in carefully before going in

@heidisure5111

2 жыл бұрын

You make it seem unreal to make up to that as a passive income annually, when its clearly possible. I have made over 1Hunred thousand dollars from May till now with no joke game plan. She’s a masterpiece and her name’s Magaret..

@micheljackson9027

2 жыл бұрын

@@heidisure5111 Have heard lots of exciting things about this broker lately but have no idea how to reach out to her.Any idea?would really appreciate please

@heidisure5111

2 жыл бұрын

@@micheljackson9027 its quite easy to reach her on tele gram with her user name *investwithmagy*

@geraldinemendez5064

2 жыл бұрын

As a first time investor I started trading with Mrs Magaret Baker with just a thousand bucks. my portfolio is worth much more that now within just weeks of trading with her.

As they say, better late than never. Glad to see that the Сhinese government has cracked down on the indebted companies in the construction sector. Something which many other countries around the world should also do.

Major suppliers are starting to report results; not pretty!

There was a dude who predicted this in 2012

@ProfAzimov

Жыл бұрын

Andrew Left?

Oh well, centralized state run economies NEVER work. Some body always looses, usually the proletariat, by design.

@alx8571

2 жыл бұрын

@@sillyseattlecat At least China has the balls to “remove” billionaires, the US should take notes.

@gordonlam2757

2 жыл бұрын

@@alx8571 they also make you disappear if you say anything about the gov't

@jondoe6926

2 жыл бұрын

@@alx8571 China left millions to lose their life savings. Where is the help for them? Exactly. Also, sorry idiot, we got TARP back from the banks.

@alx8571

2 жыл бұрын

@@gordonlam2757 Bye-bye billionaires 👋🏼

@alx8571

2 жыл бұрын

@@jondoe6926 Who did they leave behind? What are you even talking about?

$300 B DEBT Ohhhh noooooooooo 🤣🤣

@gordonlam2757

2 жыл бұрын

easy peasy .. they're restructuring LOOL🤣🤣

Time is a flat circle.

If you invested your money just go and occupy any building of your choice finish or not finish

Ah, yes, the Risk is controlable and everything id under control. Just as coronavirus.

Hello, Rebecca.

Now I now why when you search Violet evergarden, it searches evergrande

Almost all areas in China are high-rise buildings. Only people in the countryside have single-family houses.

Evergrande has defaulted already

@davidoff59

2 жыл бұрын

Multiple times

Bloomberg still refusing to tell the whole story only telling as least as possible. I always thought financial news is the best news, but these days I'm turning to small independent researchers.

I'm actually surprised that the Chinese housing bubble hasn't popped yet. I saw it coming many years ago.

Only possible because of the party, state, and society like he said?

恒大在我们安徽一个四线小城市都不通公交的城市边缘地区建了三个商品小区，售楼部都关了，全部烂尾🤣

@lillyie

2 жыл бұрын

super idol language omg

@sortof3337

2 жыл бұрын

true. evargrade is just a hype company.

@fuzzman9298

2 жыл бұрын

Hello are you from CHINA ?

@dabrad7828

2 жыл бұрын

Omg, i love bing chilling

@upvotecomment2110

2 жыл бұрын

Using A VPN? Isn't that Illegal in your authoritarian country

this is just 300billion,dont forget 2 trillion debt bubble china has for building thousands of km high speed railway network

@ryccoh

2 жыл бұрын

We spent 2T on Afghanistan. I'd prefer the rail system

@annarascala2641

2 жыл бұрын

@@ryccoh you have 0km high speed rail network 🤭

@ryccoh

2 жыл бұрын

@@annarascala2641 nah we got a few hundred miles on the east coast

@annarascala2641

2 жыл бұрын

@@ryccoh which bullet train?

@ryccoh

2 жыл бұрын

@@annarascala2641 Amtrak Acela

Why would someone build something so expensive when theres not even a demand for such properties.

@entropicpedro

2 жыл бұрын

Speculation...

The big one when temeask holdings lost a lot of money .(Singapore investment company)

This is a giant version of the Great Leap Forward, when ordinary citizens turned all they had of iron into pig-iron, by backyard furnaces, because this was the only method they had to try to follow the state's wishes to try to gain some prosperity.

I can't imagine running business in china while also not trying my very best to merge wealth and residency into the untied states.

Yo Bloomberg. You got the CEO/founder's name wrong. It's Xu Jiayin

It appears people in China do not buy these properties to live in but as investments..So they generate no income until someone buys it from the owner. Many of these buildings have few occupants according to other videos on the real estate crisis..

@durururururururu

2 жыл бұрын

this sounds exactly like NFT, but you actually own something.

And this is why when you're doing any sort of business with red Chinese, you should always assume they're lying to you in some way shape or form. It's literally baked into them since childhood after all.

This was all about GDP growth. Now it's time to pay. 20 years of stagflation. And forget about surpassing the US GDP.

The domino effect is in place. 👏

Main street and wall street may blame Evergrande, but at the end of the day people focus more on failure than success. It's fear and loss aversion on a giant scale.