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- 4 de Jun, 2019
I hate how nobody will give me dates.
Evergrande Financial Panic - Corona is not the only Contagion China is exporting
- Iniciador del tema mindlessobserver
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🇵🇦 Nuestro primer dominio localizado está en español en kiwifarms.pa. Our first localized domain is on Spanish on kiwifarms.pa.
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- 3 de Mar, 2021
You just gotta start making some shekels, friend.I hate how nobody will give me dates.
I'm not kidding when I say there's opportunity here if you know where to look to benefit from a real estate market panic that tanks China's economy. Pic related (#thisisabsolutelyfinancialadvice).
- Registrado
- 22 de Feb, 2020
Good work friend! Hope you cleaned em out.
- Registrado
- 4 de Jun, 2019
Sadly, when I said "I cornered the market on Lithium," she thought I was joking about her bipolar.
jje100010001
kiwifarms.net
- Registrado
- 28 de Ene, 2020
I wonder what happened in the month or so delay from the day it was supposed to have defaulted, to now? Government trying to make sure that it's as controlled as possible? Moving all their stuff out of the way?
- Registrado
- 16 de Dic, 2019
If Evergrande has defaulted a loan/filed bankruptcy, why is this a global big deal?
Are they the only real estate company is China?
Is real estate the only business they are in?
I just wonder why so many folks are wound up about this. I've been too busy watching a volcano to study this shit.
Are they the only real estate company is China?
Is real estate the only business they are in?
I just wonder why so many folks are wound up about this. I've been too busy watching a volcano to study this shit.
jje100010001
kiwifarms.net
- Registrado
- 28 de Ene, 2020
- Registrado
- 22 de Mar, 2019
To try to crash course you through why this is interesting;
Real estate makes up a big portion of the Chinese economy and the sector is heavily indebted (There's even theories that overall China has amassed the largest corporate debt in history). Large enough a slowdown or collapse would potentially wipe like 1-2 off global GDP.
In China the only form of investment for the average Chinaman is real estate. As long as China has had a real estate market the property values have gone up, and bonds and stocks are considered unstable and dangerous, so the average Chinese have significant exposure. 90% of homes bought in China in 2019 were 2nd or third homes. If a man wants a wife it's expected he will buy a house. Families take out massive unofficial debt from all sources to buy more houses.
The provincial governments of China can't get funding through taxes or your traditional methods, the gov in Beijing takes that, so the main funding for the provincial governments and their projects and maintainance is heavily financed through this weird method that involves leasing land to a company that sells it to companies to build more real estate and pile money into the system.
Evergrande is the second largest real estate company in China indebted over $300B, now that they've defaulted we could see the Chinese real estate sector bubble pop or deflate.
Global exposure directly is likely minimal; most global real estate has seen the writing on the wall and taken steps to get out. But China is facing power rationing right now, and food shortages are on the horizon, whack that with a market crash? China has already been acting irrationally on the world stage, and Xi's already been beating that Ethno-nationalist drum, things could get messy. (Reaches for Taiwan)
There is another possibility, in which China enters a Japan-style era of stagnation and the various bubble markets of China are slowly tamed back into reality. But by then, with the Chinese demographic collapse, there's a possibility that they wouldn't be able to rise back to the old Tiger economy the world has been expecting since the 2010s.
I think the Chinese might be able to keep the train on the track for another year or two but sooner or later something has to give.
Or the usual and 'nothing' happens as nothing ever happens.
- Registrado
- 3 de Mar, 2021
Wow, I was wrong!So they actually had like 99% of the $148mil that they owed (since they sold upwards of $145mil of assets the other day), but they weren't able to scrounge up a couple extra million dollars from somewhere? Kind of odd...
Oh well. Let the fun begin!
- Registrado
- 10 de Jun, 2021
I wish lol!
It isn't. 300 billion is a fucking colossal amount, they are selling assets like jets, paying people in properties (sometimes they are finished too!), either they are saving as much cash as possible to pay their debts in schedule or they are beyond busted and trying to contain the damages. But there is only so much you can sell off before you have nothing at hand!
Isn't that less than a single percent of their debt? If they couldn't pay this off, say goodbye to the rest lol!
So they actually had like 99% of the $148mil that they owed (since they sold upwards of $145mil of assets the other day), but they weren't able to scrounge up a couple extra million dollars from somewhere? Kind of odd...
Oh well. Let the fun begin!
Garm
kiwifarms.net
- Registrado
- 5 de Jun, 2019
Caterpillar (the tractor company) in the US has sold equipment to Evergrande. Other US companies have also probably sold to Evergrande. Either they are getting pennies on the dollar for what they are owed or repossessing equipment that is used and less valuable.
SalmonForSale
kiwifarms.net
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- 1 de Mar, 2020
tfw financial brainlet that doesn't know how to benefit from this.
T-Thanks public education system....
Back me up!
kiwifarms.net
- Registrado
- 2 de Ene, 2017
I reallllllllyyyyyy hope those companies were smart enough to get paid up front.
Garm
kiwifarms.net
- Registrado
- 5 de Jun, 2019
Oh. I doubt they did.
- Registrado
- 21 de Dic, 2018
Yeah theres no fucking way they would be able to repossess anything from the Chinese, it would conveniently get "lost" in a sink hole on a construction site.
Back me up!
kiwifarms.net
- Registrado
- 2 de Ene, 2017
Then they are dumbs fucks who deserve everything they loose.
- Registrado
- 3 de Jul, 2021
What a big nothingburger.
- Registrado
- 1 de Sep, 2018
There is no way Evergrande paid cash for equipment. The question is if Cat Financial made the loans or if it was someone from china.
jje100010001
kiwifarms.net
- Registrado
- 28 de Ene, 2020
Yeah, apparently there was a followup that the debt payment came through later?
Happenings off, I suppose.
- Registrado
- 22 de Feb, 2020
Oh no, who could have ever seen this coming?