Evergrande - The Lawsuits Begin!

Chinese creditors have sued Evergrande for more than $13 billion dollars in as domestic companies owed money by the property development firm race against offshore bondholders to get paid.

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[brodyalden]

Hi Patrick, if my only exposure to this story had been via some traditional news outlet, I’d likely have lost interest some time ago, but you’ve kept me riveted to this story from the start. Great coverage. Thank you for your excellent videos.

[m.streicher]

Imagine someone is willing to pay 70% interest and you still give them your money

[jdstarek]

Patrick is so underrated. A fantastic ming, providing clear, unbiased information....kinda like the news is supposed to be.

[devioux]

My favorite part of this channel is that Patrick doesn’t sensationalize and doesn’t over dramatize things to bait people into watching his videos, keep up the great work Patrick!!

[samsonsoturian]

In China, "Social stability" means "avoiding riots."

[thomas]

Step 1: Government confiscates all land and assigns it to local government.
Step 2: Government owned developer goes to government owned bank to obtain financing.
Step 3: Government owned developer approaches local government, with the financing obtained from the government bank, to purchase local government owned land.
Step 4: Local government sells government owned land to government owned developer.
Step 5: Government owned developer builds houses and leases them to people.

It feels like they are gaming the system to boost their stats. They are creating layers of transactions between government entities that don't add value to their economy. 🤔

[ba]

Patrick, your content is also SUPREME!

[玉音清扬]

There are a lot of invisible liabilities which are not shown in the balance sheet.

[AvobProject]

Considering how much "Tofu Dreg" construction was taking place while everyone was profiting... imagine the quality of these buildings, by contractors doing the minimum necessary to finish out their contracts on a defaulting entity. Even if the government prioritizes home buyers, they're going to be buying the lowest quality completions.

[maxslooterveld]

I am not the biggest fan of china. But if they manage to pull of compensating the little guy instead of management that would be a big win

[SJ-npcz]

The Evergrande collapse reminds me of falling asleep - it happens gradually then all at once. People are going to act surprised when this all falls down like a house of cards and the contagion spreads.

[gunnars.]

Where has all this money gone?
They built homes, sold them and made tons of money. And still people want to buy homes.
So what happend to all this money?

[johnchao]

Guangzhou is pronounced "gwong-joe"

Love your content Patrick!

[hereigoagain]

My stretch goal is to understand 80% of Patrick's discourse. Great videos.

[phil]

Vastly Superior content once again. I love it. Thank you.

[TheMrFishnDucks]

Fantastic video. Keep up the good work.

[kyleme]

4:45 LOL a third of their total "output". Wow. I've been wondering for 10 years what was going to happen with all those empty buildings and cities and now we know. Its literally a house of cards, all those buildings getting blown up.

[hanooi]

I'm wondering, did any Chinese companies underwrite insurance contracts guaranteeing Evergrande debt? That's what AIG did for cdo's during the US mortgage crisis which spread contagion leading to bailout. So far, this looks like a standard bankruptcy though of a large company. More Chrysler than AIG or Lehmann.

[Football__Junkie]

When you’re a pseudo government entity, your financing is from the government central bank, and your main revenue source is from the government, then how do you go under? This doesn’t make sense.

[ninelima]

Meh ... $13 billion is less than a one week's worth of money printing in Australia.