Those silly commies don’t understand that you have to bail out capitalists when they fail.
China need to up their can-kicking game
Oh the horrors of billionaires not getting their treats 😢
It’s actually quite funny how people foresaw the downfall of the Chinese economy following Evergrande, and it just kinda carried on as normal because the Chinese govt refused to bail them out.
No doubt some people are gonna get burned by that policy too, but they made the right choice by not rewarding a company that clearly had significant financial management issues.
Property developers in China, unlike banks in the US, are not the backstop of the economy. They are not too big to fall: it’s just that their distressed assets need to be managed to minimize losses to their customers.
Normalize not bailing out failing big businesses, hope we can bring that custom over here.
Iceland got back on its feet after 2008 with a quickness because they jailed a bunch of bankers.
God I wish that were us
Common China W
Unlike U.S. bailing out “too big to fail”, China says “fuck you - we keep the tax dollars for us.”.
Near perfect capitalistic communism as is possible.
Yes but can they please do this without leaving half finished skyscrapers in other countries? The situation in LA kind of sucks now that the city has to spend millions cleaning it up (supposedly sending the bill to a bankrupt Chinese developer, as if that’ll work).
They don’t “have to” clean up the totally innocuous graffiti
This is true. It’s become a bit of a tourist attraction.
Y’all are dancing on this, but if they go through with it, this is going to cause a run of panic that will wipe out the savings of hundreds of millions of people.
It would in the west, in China they do a controlled crash, i mean it’s already happened, one of their biggest housing companies already crashed and it did not caused anything except rise in home ownership among the people.
Evergrande already went bankrupt in 2021 and the general population in China have been mostly shielded from the damage (except the poor billionaires though 😢)
How were they shielded? Do you have a source I can read? I’m genuinely interested.
I remember reading that there were protests because people bought condos and were essentially told they were never going to get completed. Did those people get a refund from the government or the company?
Not afaik. Anyone buying an unfinished condo though likely already has a home, specially since China’s home-ownership is about 90%.
And if they don’t, they can buy one for much cheaper now cuz house prices have gone down thanks to this real estate bubble being popped. And China already has 600 million vacant homes.
This also coincides with the CPC moving funding from the overinflated real estate sector to the high tech sector btw.
particularly EVs
Geopolitical economy report has a more in-depth video on this.
wipe out the savings
It’s zero sum to the population. Every dollar lost by an investor is a dollar saved by a new family buying a home.
I dont care about investors when their investing in real estate has caused housing to skyrocket in price and making renting the only option for many people, myself included, while at the same time those same people will rent out at astronomical rates making many of us live more than paycheck to paycheck.
American developers need to go bankrupt the same way if they won’t make accommodations affordable
