Posted on 10/03/2021 8:38:18 PM PDT by American Number 181269513
Trading in shares of debt-laden China Evergrande was suspended on Monday after it missed a key bond interest payment last week, its second offshore debt obligation in a week, with market watchers jittery as the group’s troubles unravel.
Shares of its unit Evergrande Property Services Group were also suspended, according to the Hong Kong stock exchange.
With liabilities equal to 2% of China’s GDP, Evergrande has sparked concerns its woes could spread through the financial system and reverberate around the world, though worries have eased somewhat after the central bank vowed to protect homebuyers’ interests.
(Excerpt) Read more at reuters.com ...
I’d bet this is not good.
Probably going to have some effect on our markets. It all depends on whether the Fed wants some short sellers (some of them probably politicians) to make money or not.
Whether folks want to accept it or not, this is MAJOR financial news. Evergrade is a HUGE corporation, it really is.
Who will be the first to say “too big to fail?” 😳
China overbuilt
WATCH: China: Fifteen brand new high rise buildings purposely blown up in 15 seconds
https://rumble.com/vmhz7f-fifteen-brand-new-high-rise-buildings-purposely-blown-up-in-15-seconds.html
The news is going viral, all over the world, as I type. This is going to be big news tomorrow on the financial pages.
That took awhile.
“With liabilities equal to 2% of China’s GDP, Evergrande has sparked concerns...”
Knowing nothing of business or finance, something tells me this is not good. One company having liabilities equal to 2% of GDP?
Evergrande is 8 times larger than Lehman brothers was in 2008.
How much public pension debt is invested in Chinese markets… depends on the lib city but LA I think loves China.
Yes, it is a very large company. It will be very interesting to see what actually happens.
* Scapegoat
* MBS DOs
* OBodyMortgagers
* Black Cube
* Slavery
* TARP
❎
Fifteen buildings is nothing.
As of 2020 China had 50 ghost CITIES. Cities that were built with millions in mind but only house a couple hundred thousand each.
Serious over building has been going on for about 20 years.
Thus far tonight, WSJ has one opinion column regarding Evergrande, one article about record number of Chinese aircraft sorties near Taiwan, an article about a Chinese ultramarathon turning deadly, and another article about U.S. mortgage payments getting more unaffordable.
I’ve always thought those ghost cities in China were replacements for ones that might get nuked.
Read something recently which said the housing market in China accounts for 25% of its GDP.
No, they just kept building so they wouldn’t have to lay anyone off. The CCP was demanding 100% employment and ghost cities are the result.
Spain has ghost cities from the 2008 housing bust. Even old villages have been abandoned as the young move to the cities.
Which is really crazy. Really, really crazy.
When you buy a house or apartment in China you’re not really buying it. The CCP gives you a 99 year lease on what you “ buy”.
If you buy a house, make payments for 70 years then drop dead, the CCP gets your place back and your spouse/children are in the street. Unless they can make the payments for another 29 years. Then they get to sign another 99 year lease.
Housing costs are so high it takes a working couple along with both sets of parents to get a pair of newlyweds into a home. A small home.
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