Big commercial real estate firm in China, Evergrande, has $300 billion in debt and is having serious difficulty servicing it. The Hong Kong stock exchange dropped 794 points today and has dropped thousands of points in the last couple of weeks. Banks from all over the world are heavily invested in Evergrande and this could start a liquidity crisis, a domino effect. Will be interesting to see how our stock exchanges do today. Bonds, stocks, real estate are all overpriced bubbles and this may be the catalyst that pops them. As in an eventual 50-70% drop, maybe more.
China's Evergrande Problem
- Thread starter vantexan
- Start date
They recently started to offer real estate as payment to their creditors. They have bonds due today and Thursday that they're expected to default on. Besides them no one knows exactly how bad off many Chinese companies are. This could be the tip of the iceberg that could lead to a worldwide contagion. The Chinese seem good at that.
NAHimGOOD
Nothing to see here.... Move along.
Everyone likes to call us bullies..
Or at least use to call the USA bullies.
China has that cocky arrogant 130lb 5'8 BJJ instructor attitude.
On the plus side if their economy collapses they'll probably be a lot more cooperative. They'll need our market more than ever.
NAHimGOOD
Nothing to see here.... Move along.
But...
The new generation doesn't buy.
They steal.
Unless they are working a insurance fraud plan...
There's no way to expect economic growth in the future.
Most people go to work and pay as they go on credit. We have some serious structural problems that eventually will implode on us but right now China is probably going to collapse economically first.
NAHimGOOD
Nothing to see here.... Move along.
Cash is king...
Jkloc420
Do you need an air compressor or tire gauge
Buy buy buy
PT Car Washer
Well-Known Member
US stocks down 2%. Worse day on Wall Street since July. LOL. Oil is down 2% also.
Jkloc420
Do you need an air compressor or tire gauge
Bidens going to save us all mother
erPT Car Washer
Well-Known Member
The sky is falling, the sky is falling. Chicken Little. LOLBidens going to save us all mother
Jkloc420
Do you need an air compressor or tire gauge
You love joe biden and hoffa jr
PCM Troll
Well-Known Member
Every time you post something, you make me cringe due to your stupidity and ignorance. If Evergrande goes bust, it can have major consequences for everyone including you. You wouldn't be posting your "LOL" like a teenage girl if you understood just how serious this is.
PT Car Washer
Well-Known Member
Okay troll tell me how a Chinese company going bust is going to affect me. Or anyone in the US.
PCM Troll
Well-Known Member
You make my brain hurt. Why don't you try educating yourself for once?
PT Car Washer
Well-Known Member
I guess you couldn't think of anything.
Jkloc420
Do you need an air compressor or tire gauge
U.s money flows into china and china money flows into the u.s, it is basically a real estate company, it may single another 2008 real estate collapse or it might not
They owe $300 billion including to a lot of foreign banks. No one knows just how many other Chinese companies are in trouble also. If the Chinese government bails them out they most likely won't bail out foreign investors. Evergrande is offering real estate to its investors at a discount instead of money. If enough investors take them up on it there will be billions worth of real estate flooding the Chinese market. It will cause their economy to collapse. That will have a domino effect around the world. This isn't a partisan political issue. We may be looking at a Great Depression scenario.
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