China’s housing crisis

[Chew Toy McCoy]

A property giant in China is on the brink of collapse. The government might let it fail.

The developer’s predicament could deal a serious blow to the world’s second-biggest economy as Beijing faces what might be one of its largest defaults.

www.nbcnews.com

This will be interesting to watch. In some ways their crisis is the opposite of the US crisis, too much inventory coupled with our similar “Growth! Growth! Growth! Addiction.

 

[SuperMatt]

A property giant in China is on the brink of collapse. The government might let it fail.

The developer’s predicament could deal a serious blow to the world’s second-biggest economy as Beijing faces what might be one of its largest defaults.

www.nbcnews.com

This will be interesting to watch. In some ways their crisis is the opposite of the US crisis, too much inventory coupled with our similar “Growth! Growth! Growth! Addiction.

These investors want the gains without the risk. When it goes bad, they want a bailout. If they default, give the creditors the property. If the creditors loaned more than what the property is worth, oh well - they screwed up. They can fire their executives and/or or take it out of their pay.

 

[Chew Toy McCoy]

5 Lessons Evergrande Taught Us About The Chinese Economy

Here's what a troubled property developer tells us about the Chinese economy.

www.npr.org