Evergrande Financial Panic - Corona is not the only Contagion China is exporting

Lol, and just as people here thought China was a better alternative, the bugmen showed that they're in the woodchipper too. Now all of us are going to suffer.
 
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WULULULULU said:
Lol, and just as people here thought China was a better alternative, the bugmen showed that they're in the woodchipper too. Now all of us are going to suffer.
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Worse then us actually. At least in the West the Banks and the Government are on the same team. This is not the case in China. Quite the opposite. The Chinese banks are loyal to Jiang Zemin, the previous premier of the CCP, and not Xi Xinping the current premier.

Worse, the Zemin faction doesn't just control the banks, they also control the internal security services. The Xinping faction controls the national beaurocracy and the military. This has been a source of intense internal friction in China, and this crisis is going to make it worse. Because the Chinese banks are going to need massive government intervention by Xi's government, while at the same time the Chinese State is going to need Zemins security services to keep a lid on things.

Both sides have things to gain towards just seeing the whole thing fail and letting the chips fall.
 
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mindlessobserver said:
Worse then us actually. At least in the West the Banks and the Government are on the same team. This is not the case in China. Quite the opposite. The Chinese banks are loyal to Jiang Zemin, the previous premier of the CCP, and not Xi Xinping the current premier.

Worse, the Zemin faction doesn't just control the banks, they also control the internal security services. The Xinping faction controls the national beaurocracy and the military. This has been a source of intense internal friction in China, and this crisis is going to make it worse. Because the Chinese banks are going to need massive government intervention by Xi's government, while at the same time the Chinese State is going to need Zemins security services to keep a lid on things.

Both sides have things to gain towards just seeing the whole thing fail and letting the chips fall.
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So it's the usual Chinese history repeating itself, infighting during a time of great crisis led to the a great change. The best thing the West can do right now is actually just ignore them and let them fight each other to mutual death
 
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I saw this blog post about the Chinese people who lost their savings. One paragraph is worth to check an eye.

Over $6 billion (39 billion yuan) is missing. A reported 400,000 people have been affected. Imagine going to the bank only to realize that your entire life’s savings were gone instantly? You worked hard, saved, and did everything right for years or decades, only to have it all abruptly taken away. Even the most ruthless government is in trouble when the people have nothing left to lose. Imagine if the Chinese were permitted to own guns? There would be uncontrolled civil unrest.
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mindlessobserver said:
Mortgage defaults and riots are increasing exponentially.



Steel profits in China have plunged 70%. Six Chinese steel companies have gone bankrupt, and 28 have stopped production .

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I am not surprised at the steel profit dropping with the rest of the worlds developments and expansion hobbled by environmentalism and running out of money and morale- and the fact people are buying less crap that would use it.

That and Chinese metal industries are notoriously dogshit- There's 3 copypastas and one reliable story where anyone who has to source raw material from them has to deal with the headache of eternal vigilance and poor communication from the start to the end, in order to avoid being cheated by the rice goblins at every turn. From it being the wrong thickness, the wrong alloy/levels, to not showing at all resulting in a back and forth time and money waste on both sides to a point where if we had our own local industry that would have been cheaper in the end.

And you have no recourse if scammed by the eternal chinaman because it'd be chinese courts by default if it even were entertained at all by them.
 
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mindlessobserver said:
Mortgage defaults and riots are increasing exponentially.



Steel profits in China have plunged 70%. Six Chinese steel companies have gone bankrupt, and 28 have stopped production .

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I’m curious how this is going to affect all their loans to the developing world. China, Sri Lanka, Pakistan, and Africa aren’t doing so hot. Even if they get commodities instead of payments for their loans, the whole infrastructure for trade is going to be wrecked too. What if countries can’t pay them back and refuse to even give up commodities that they may need for their own country? What of the countries that became dependent on China’s teet? This is going to be much nastier than 2008.
 
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IAmNotAlpharius said:
I’m curious how this is going to affect all their loans to the developing world. China, Sri Lanka, Pakistan, and Africa aren’t doing so hot. Even if they get commodities instead of payments for their loans, the whole infrastructure for trade is going to be wrecked too. What if countries can’t pay them back and refuse to even give up commodities that they may need for their own country? What of the countries that became dependent on China’s teet? This is going to be much nastier than 2008.
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It's worse since China actually have to lend them more money just so these countries can stay afloat. Of course, the original goals for all this massive loans was debt traps for important places/facilities, like Sri Lanka's Hambantota Port, but Covid and the War in Ukraine really fucked CCP hard enough for this strategy to backfire on them
 
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Michael Janke said:
this reddit post is pretty interesting. looks like those houses are finally going down.
old.reddit.com

China demolishing unfinished high-rises

Posted in r/interestingasfuck by u/iop9 • 99,067 points and 8,849 comments
old.reddit.com old.reddit.com
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I'm not a professional demolitionist, but that looks like a really bad job vs what I've seen people in the west do. Some of those remind me of a domino falling over like they piled explosives under a couple pillars and said "fuck it good enough"
 
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wopirish said:
I'm not a professional demolitionist, but that looks like a really bad job vs what I've seen people in the west do. Some of those remind me of a domino falling over like they piled explosives under a couple pillars and said "fuck it good enough"
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I mean it's China, there was probably a shift of workers still in each building when they detonated.
 
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Rezza said:
It's worse since China actually have to lend them more money just so these countries can stay afloat. Of course, the original goals for all this massive loans was debt traps for important places/facilities, like Sri Lanka's Hambantota Port, but Covid and the War in Ukraine really fucked CCP hard enough for this strategy to backfire on them
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Yeah, just like Tom setting a mousetrap to catch Jerry only to have his hand caught in the mousetrap.
 
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