Current Events > China's Evergrande collapse could have a domino effect on real estate sector

(+) Yeah! (+)

https://www.cnbc.com/2021/09/20/evergrande-debt-collapse-could-have-domino-effect-on-china-properties.html

This feels like covid all over again. Where it is being treated as a China issue until it becomes global.

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Sounds like the company was in hot water a while ago and couldn't cheat the system like an american company. Sucks it effects a lot of other peopel besides the company though.

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yutterh posted...

Sounds like the company was in hot water a while ago and couldn't cheat the system like an american company. Sucks it effects a lot of other peopel besides the company though.

Unlike America. China probably isnt going to bail them out since that would be helping the rich. So this could get ugly for those in the stock market.

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BlueTigerLion posted...

Unlike America. China probably isnt going to bail them out since that would be helping the rich. So this could get ugly for those in the stock market.

Exactly, kudos to china for it. Sucks that people will be affected but what's the point in propping up a dead company anyways? They usually have to be bailed out later anyways. I get the "oh no people are gonna lose their jobs!" Jsut let nature take it's course cause it's just gonna prolong the inevitable.

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yutterh posted...

Exactly, kudos to china for it. Sucks that people will be affected but what's the point in propping up a dead company anyways? They usually have to be bailed out later anyways. I get the "oh no people are gonna lose their jobs!" Jsut let nature take it's course cause it's just gonna prolong the inevitable.

It might effect the US and rest of the world though is the issue

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First Ive heard of this. Whats this mean for the Chinese buying up all the land overseas in America/Australia?

Kloe_Rinz posted...

First Ive heard of this. Whats this mean for the Chinese buying up all the land overseas in America/Australia?

This, who gets California?

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On its own, a managed default or even messy collapse of Evergrande would have little global impact beyond some market turbulence, MacAdam, a senior global economist at the firm, said in a Thursday note. Even if it were the first of many property developers to go bust in China, we suspect it would take a policy misstep for this to cause a sharp slowdown in its economy.

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Doe posted...

On its own, a managed default or even messy collapse of Evergrande would have little global impact beyond some market turbulence, MacAdam, a senior global economist at the firm, said in a Thursday note. Even if it were the first of many property developers to go bust in China, we suspect it would take a policy misstep for this to cause a sharp slowdown in its economy.

People said this when COVID started. It was only going to effect China dont worry. Its a global economy. Recessions arent isolated. Not at Chinas level.

Only way this wont be issue is if China bails them out. If China lets them fail RIP global economy.

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Just print more money.

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Half the condos in Manhattan are empty, this was a time bomb.

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sell sell sell sell

yutterh posted...

Jsut let nature take it's course cause it's just gonna prolong the inevitable.

thing is, you people wanna live like this in your big cars and big fuckin houses you cant even pay for. the only reason yall get to continue livin like kings is cause in my trade we got our fingers on the scales in your favor. I take my hand off and then the whole world gets really fuckin fair really fuckin quickly and nobody actually wants that. you say you do but you dont. yall want what we have to give you but yall also wanna play innocent and pretend you have no idea where it came from. thats more hypocrisy than Im willin to swallow

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scamatoru posted...

thing is, you people wanna live like this in your big cars and big fuckin houses you cant even pay for. the only reason yall get to continue livin like kings is cause in my trade we got our fingers on the scales in your favor. I take my hand off and then the whole world gets really fuckin fair really fuckin quickly and nobody actually wants that. you say you do but you dont. yall want what we have to give you but yall also wanna play innocent and pretend you have no idea where it came from. thats more hypocrisy than Im willin to swallow

What are you on about?

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BlueTigerLion posted...

It might effect the US and rest of the world though is the issue.

Yes I know, it's what happens when the government allows foreign nations to buy our land. Russia also owns a lot of our land.

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so how's china's ruling party going to twist this into yet another way to fuck over their own population?

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monkmith posted...

so how's china's ruling party going to twist this into yet another way to fuck over their own population?

the biggest way to do that would be by bailing out the corporation

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averagejoel posted...

the biggest way to do that would be by bailing out the corporation

is it? i dont see them doing anything that doesn't directly serve them, so i'd imagine it would depend on how much money the upper level members have involved in the situation.

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monkmith posted...

so how's china's ruling party going to twist this into yet another way to fuck over their own population?

China has two distinct advantages over us, they think long term and dont have to pretend to care about their people.

China has been around a lot longer than the USA and plans to be here long after we collapse. We live crisis to crisis trying to stave off the inevitable calamity.

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KiwiTerraRizing posted...

China has two distinct advantages over us, they think long term and dont have to pretend to care about their people.

China has been around a lot longer than the USA and plans to be here long after we collapse. We live crisis to crisis trying to stave off the inevitable calamity.

lol, china as it currently stands has been around for less then 100 years. lets not connect them to the previous governments that have been in power there, they literally burned those connections decades ago after all...

and i'm not sure i believe that bit about the long game either, since their ruling party seems to have manufactured several crisis for themselves in the long term.

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China is going to use this as an excuse to nationalize real estate.

Questionmarktarius posted...

China is going to use this as an excuse to nationalize real estate.

Real estate is already nationalized. They lease out land for a limited time.

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1337toothbrush posted...

Real estate is already nationalized. They lease out land for a limited time.

This is true, but the real market is leasing out the actual building on the land. When people say someone is a landlord in China they mean they are renting out buildings, not the actual land (which is leased from the government, usually on fairly long term leases).

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wickerman posted...

Could this be China's Japan moment?

You know how Japan was doing great and supposedly en route to become the new giant and then the real estate bubble pushed them into a neverending downward spiral?

I think government tampering is what's going to do them in. Their government is getting more intrusive by the day.

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ssjevot posted...

This is true, but the real market is leasing out the actual building on the land. When people say someone is a landlord in China they mean they are renting out buildings, not the actual land (which is leased from the government, usually on fairly long term leases).

Thus, China is going to take back the leases, and anything built on the land.

It's already starting to spook the US real estate market. But that's not really China's fault though, everyone knows this is a housing bubble crisis waiting to happen and we haven't even solved the low wage problems in the US either.

The US housing bubble popped already. We're just in the middle of a "float" period where nobody wants to take a loss.

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