EVERGRANDE EXPLAINED: How China’s Lehman Brothers Moment Is Crashing The Stock Market

Krystal and Saagar take a deep dive into the forces leading to the stock market tanking, in particular the situation involving China’s real estate market which might sound familiar to many Americans

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  1. If you put your life savings into a house/condo that you plan to keep empty and just sell later (when housing is currently 40x earnings) than you deserve to lose all of your money. How about invest in something productive.

  2. USA is fine with globalization, as long as they are the ones doing the "infecting" (it's the "as long as the price is rising" mentality again).
    Saagar's quick comment about China borrowing rapacious Capitalism from America is quite important. China's growth stems from a ruthless business attitude, with the American Dream as the inspiration…don't hate the player hate the game?
    If Capitalism is endless competition, leading to innovation and progress, then there's an inherent risk that monopolies will come to dominate. Or maybe is less a risk and more an inevitable outcome.
    The most famous current day example of the success of Capitalism is Amazon. It came from nothing to become what is essential a closed and controlled market, similar to how the CCP run China. They are happy to see sellers grow up to a point so they can monitor consumer trends, before they sweep in and undercut with cheaper versions of beat selling products. They gate-keep potential sellers and can expel sellers for any infringement of their rules. And they are very hard to petition.
    Maybe it's just how things go…things grow til they reach tipping point and collapse. Companies, countries, people.
    Sorry if this doesn't make sense, thinking out loud…

  3. People have been arguing that China is a """Paper Tiger""" and can collapse at any moment for several years, and none of their predictions have planned out and China has continued to grow at a rapid pace. I'm very skeptical that this story will be any different.

  4. Housing is even more than that on China. You have to have an address in a city in order to access its public good. Notably schools for example. So for those migrant families with a kid the parents often times have to leave them in the country with grand parents while the parents work in the city to try and purchase a home so they can bring their kid along. It’s madness really.

  5. The irony that during the Chinese communist revolution they went after and attacked landlords. And then they immediately force everyone to be a lifetime tenant. Where's AOC, sign me up! Sounds like a great system.

  6. The MSM doesnt cover this much because they want to keep up the illusion that everything in the stock/housing market is completely fine to buy enough time for the elite to quietly pull their shit out first