The point being made is that the vastly overbuilt ChiCom property bubble has already burst / is bursting now and the crash, which dwarfs the US bubble of a few year back, is already happening.
I’ve been waiting on this for years. I hope the collateral damage to the rest of the world isn’t too bad.
My thought is what happens if the ChiComs or just ordinary Chinese people, should they be suddenly desperate for cash, start to sell off properties they’ve purchased abroad (to them, of course)?
That is a concern for sure. Will that result in another housing crash?
Here in the US?
Recently I heard that Fannie and Freddy wanted to guarantee homes worth millions. Or at least 7 figures. It’s like history keeps trying to teach people things but many never listen.
1 Like
It doesn’t matter to China what happens to the Chinese economy. They will suppress any complaint with an iron fist and can’t be voted out. A synchronous collapse of democratic state economies will create havoc for their leaders. All to China’s advantage. And to the already-wealthy sector’s advantage, who will soak up more property from the middle class.
Definitely interesting. So China has a large military age male population, already frustrated at the difficulty to establish a family. That group may now be joined by large segments of the population losing their savings because of speculative real estate development. And they have large swaths of high rise developments that are actually uninhabitable, thus can not be purchased or rented for occupation. Civil unrest on a national level is almost always predicated on the gap between economic expectations and reality growing too wide. The CCP has allowed an expectation of potential individual prosperity to develop. This has the potential to become very, very ugly.
Maybe some enterprising individual can quickly start a business selling candle molds and wicks to his local community?
(It could be that bad.)
It will also be interesting for the internal power structure of the CCP. Whenever a one party system is imposed, factions will develop within that single party structure. There are always those holding power and those looking to gain power.
Indeed. I recall talk that the ruling faction in the CCP first made sure blame was laid at the feet of the rival faction over Covid … you know, rather than respond to the outbreak.
Political parties are really nothing more than factions within society. Divisions of opinion and the motivation to secure the privileges of power are always present.
Here’s the latest on Evergrande.
So basically the CCP can cause a major economic downturn in world markets anytime they want by letting their real estate bubble explode.
We aren’t in any position to lecture other countries on responsible finances.
The CCP is the modern National Socialists complete with internment camps and evil science. We should be criticizing them 24/7. Yes, sad we’ve helped them achieve so much.
Oh I don’t mind criticizing them, my comment was more about our governments reckless fiscal policies that have harmed other countries.
Yes, printing money and causing inflation … It’s like they can’t learn!
Should have kept decoupling
Amen!
I call the Keystone Keynesians for a reason: bad times demand spending and good times are an opportunity to spend. Lather, repeat. (no rinse)
He was talking about finances.
