this post was submitted on 03 Feb 2024
297 points (97.4% liked)

World News

38695 readers
3337 users here now

A community for discussing events around the World

Rules:

We ask that the users report any comment or post that violate the rules, to use critical thinking when reading, posting or commenting. Users that post off-topic spam, advocate violence, have multiple comments or posts removed, weaponize reports or violate the code of conduct will be banned.

All posts and comments will be reviewed on a case-by-case basis. This means that some content that violates the rules may be allowed, while other content that does not violate the rules may be removed. The moderators retain the right to remove any content and ban users.


Lemmy World Partners

News [email protected]

Politics [email protected]

World Politics [email protected]


Recommendations

For Firefox users, there is media bias / propaganda / fact check plugin.

https://addons.mozilla.org/en-US/firefox/addon/media-bias-fact-check/

founded 1 year ago
MODERATORS
 

A Hong Kong court ordered the liquidation of China Evergrande, the world's most indebted property developer.

Evergrande has assets of about $245 billion, but owes about $300 billion.

Its demise is a "controlled collapse," but still raises systemic risk and will hurt investors, says an analyst.

you are viewing a single comment's thread
view the rest of the comments
[–] [email protected] 7 points 8 months ago (2 children)

The problem is that those ghost cities aren't actual cities. The housing is largely worthless and uninhabitable, crumbling before it's even finished, often only "finished" to look that way from afar. You can't actually do anything with it other than tear it down.

[–] [email protected] 5 points 8 months ago (1 children)

It looks to me like there are a fair amount of finished homes with fine construction that are vacant due to this whole thing. Many weren’t completed but many were.

[–] [email protected] 1 points 8 months ago (1 children)

Fine construction? Based on what? Have you actually seen these ghost cities? There is nothing fine about them.

[–] [email protected] 2 points 8 months ago

Based on scanning wiki and a couple articles and seeing nothing about construction quality aside from unfinished projects, definitely not an authority

[–] [email protected] 2 points 8 months ago (1 children)

Oh I see, didn’t realize the construction quality was terrible:( So it was a sham the whole time? I thought they just didn’t think through the locations which made the housing useless (no work within reasonable commute).

[–] Gradually_Adjusting 6 points 8 months ago (1 children)

The whole thing was essentially a real estate Ponzi scheme where new investors were paying for pre-existing work, from what I've read

[–] [email protected] 3 points 8 months ago (1 children)

New investors were covering existing loans you mean!
No Ponzi scheme here, nothing of the sort. Just good old economics!

But yes, they sold apartments and used the proceeds to finance existing, already sold buildings that weren’t built yet.

[–] Gradually_Adjusting 7 points 8 months ago

This isn't a pyramid scheme, but it definitely collapses if it stops growing.