China's Economy is Collapsing in Days, Not Years

China's economy has flipped, and it flipped fast! There are so many moving parts and hopefully this video simplifies it!

[danielx]

I can bet money that it won’t collapse in days. Anyone in?

[batmansillo]

Finally! Someone was able to explain this in a very simple, straight to the point way. THANK YOU!

[mulindwaemmanuel]

It's now months and Chinese economy hasn't collapsed less informed people playing wise is a very good sign of foolishness

[steveelliott]

I believe Country Garden is largest developer in China.

[Quagthistle]

Actually, the situation is FAR more complicated (and interconnected) that this makes it seem. The real estate ponzi scheme had been going on for decades until ALL the real estate firms were vastly over-leveraged (borrowing far more than they could ever pay back), so the Chinese government cracked down on this, which, in turn, caused Evergrande to go bankrupt (though the other real estate developers aren't far behind them - they're just smaller). Real estate is a BIG industry in China, as in 70% of households have investments in it. So did small rural banks... some of whom had been advertising higher interest rates (supporting local businesses and all that stuff) and telling customers their money was going into a savings account when it was really going into risky investment accounts (which aren't covered by FDIC even in in the US), some of which money was invested into "non-performing loans" (a euphemism for the bank director writing an IOU and pocketing the money). When the real estate house of cards began to collapse, some of the presidents of these small banks got out of Dodge with a chunk of depositor change, money the government of China won't replace because it basically wasn't in an FDIC account (though it's not called FDIC there). Even here in the US, money in a non-FDIC account isn't covered by FDIC, however, the banks weren't being honest in their disclosures (but the government feels that's on the banks, not them). This caused a lot of people to lose faith in the banks and start withdrawing money (see: bank run), but the banks halted it temporarily by freezing people's cards and accounts... until a ton of people stopped paying their mortgage payments because their house isn't being worked on. Then, the banks lost a lot of their revenue, and, coupled with the COVID lockdowns destroying small businesses and putting many people out of a job... well, it's a BIG economic mess with global implications.

[joethegeographer]

A real estate bubble with values exceeding those found in NYC, London, and even Tokyo, that is built on leased land. It is a fascinating story. Thanks for sharing!

[con-king]

I wonder how this will affect the US housing market as well. Great video! Hadn't heard about how much trouble China was in with this.

[jonathanlanglois]

Presale does exist in Canada, but the difference is that units are typically built as they are being sold. Developers don't get the entire amount at once. They need to meet completion goals at various stages of construction to get the money from the bank.

[samthai]

Some facts are incorrect. Pre-sold homes amounts to millions. Length of time some people have been waiting is over 8 years! Now it appears that this ponzi scheme is very common. All Chinese real estate companies are doing this.

[jenicarter]

Thank you for the explanation 😁 I understand

[twomix]

Evergrande isn't just $56 billion dollars in debt it has 300 billion dollars in total liabilities. It will affect the US too if the entire thing implodes because US companies like Blackrock and UBS have exposure to Evergrande although relatively "small" (only $20 billion dollars).

[humanbeing]

I am on 15 June 2023, i am still waiting

[leeprice]

if anyone world wide thinks there bank money is insured your crazy . one bank goes the rest will follow.

[thechet]

I'll make a 10k dollar wager with anyone. All these youtubers are trying to be the next sage of economics and finance by predicting the Chinese economic collapse due to failures in the housing market and culture. None of them understands any of the fundamentals that the Chinese system is built on and why it won't fail. Disagree with me? Think I'm some Chinese bot? Then take me up on my wager. Watch this video again. Then watch the dozens others just like it. They all use the same stock footage of isolated incidences as if it's some country wide epidemic plaguing the country. Any brave gamblers out there? I will be happy taking your money. We can decide a time frame and play it like shorting a stock.

[se]

Nah bro it’s been dead in the water for 2 years I’m surprised they are still doing as well as they are. 😂😂

[wolverine]

Is it a new trend to talk about china
Left and right?

[peterfireflylund]

1) annoying intro.
2) "visual learners" don't exist.

[matthewdolman]

Another YouTube finance dude that suddenly becomes an expert on China while knowing nothing about China, but at least he watched that poorly informed casgain academy video.

[Mookylaaa]

Lolol... not one financial news outlet is mentioning this.. click that bait man...lolol. The markets reacted to Evergrande months ago.. lolol