China Subprime Bubble set to burst

HeSaidSheSaid

HeSaidSheSaid

Moody's rates the debt of 51 out of 61 Chinese property companies as "junk."
China has 65 million vacant residences.

I think the fundamental problem is lack of real demand for these properties. China has overbuilt, can't find buyers for these properties like those Ghost cities around China.

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collateral damages due to real estate bubble burst: brick makers, cement producers, building material suppliers, appliances makers, cabinet makers, companies that produces roofing and flooring materials, banking (loan services), ...

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HeSaidSheSaid said:
collateral damages due to real estate bubble burst: brick makers, cement producers, building material suppliers, appliances makers, cabinet makers, companies that produces roofing and flooring materials, banking (loan services), ...

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This is why they would never let the bubble burst because of all those jobs that are at stake let alone all those $$ poured into the development of those properties. Trust me, the government will NOT let them fail. In United States, those companies are always too big to fail. In China, they just never fail because they ARE the government.

The only problem is the crappy impact those overdeveloped properties have on the environment not just in China but around the world. All those land that these wasted properties sit on were originally farmland that could've and should've been continued to be used for agriculture to feed the ever-increasing population in China especially when sometimes these farmland had been in the family for generations before they were forcefully expropriated by the government for real estate development. So now with these farmlands gone, China has to import agricultural products from subsidized farms in United States and also now Brazil who in turn decided to destroy their own precious Amazon rainforest to create farmland just to satisfy the insatiable appetite of China. So now China, not only destroyed its own farmland but now influenced other countries to destroy rainforest, devastating the environment further just to make a few more $$'s. Another great achievement from China! Hooray!!
 
I've been reading China crash predictions for over a decade. It won't happen because the government's willingness and ability to socialize economic losses is almost unlimited, and the country's overall economic position is extremely strong.

Covid was the biggest economic shock in decades, far more damaging in terms of losses and disruption than a simple real-estate slowdown, yet in the end it was barely a speed bump.
 
"Consumer short-term debt.. . is approaching a historical turning point.... It must soon adjust itself to the nation's capacity for going in hock; which is not limitless" declared a magazine. A month later the magazine added, "The same general observations apply to mortgage debt—but with double force."

This was written by Fortune Magazine in 1956. Timing is everything
 
Daal said:
"Consumer short-term debt.. . is approaching a historical turning point.... It must soon adjust itself to the nation's capacity for going in hock; which is not limitless" declared a magazine. A month later the magazine added, "The same general observations apply to mortgage debt—but with double force."

This was written by Fortune Magazine in 1956. Timing is everything
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Yes they said WMP would crash in 2015....FOR SURE. They had charts of the trillions coming due and cannot be paid etc. Photos of bank runs and atms out of money.

What happen to that analysis? They just stopped writing about it and nothing happened.
 
JSOP said:
So now with these farmlands gone, China has to import agricultural products from subsidized farms in United States and also now Brazil who in turn decided to destroy their own precious Amazon rainforest to create farmland just to satisfy the insatiable appetite of China. So now China, not only destroyed its own farmland but now influenced other countries to destroy rainforest, devastating the environment further just to make a few more $$'s. Another great achievement from China! Hooray!!
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The most hilarious part about this post is that @JSOP is Asian, specifically Chinese.

I would bet @JSOP bought blue contacts lenses and dyed blonde hair.
 
Specterx said:
I've been reading China crash predictions for over a decade. It won't happen because the government's willingness and ability to socialize economic losses is almost unlimited, and the country's overall economic position is extremely strong.

Covid was the biggest economic shock in decades, far more damaging in terms of losses and disruption than a simple real-estate slowdown, yet in the end it was barely a speed bump.
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Yup especially when they can crack the whip and make 1.5 billion people do as they say. But if you do as they say, they make all your debts, real or on paper disappear. That's the deal. The sword is mightier than words in all situations in China.
 
Tactic for trade negotiation: China banks are experiencing shortage of dollars to buy and pay for goods, services, and loans...


Peter Schiff predicted the 2008 market crash.

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