If a billionaire is in actual trouble, he's in China. US would have bailed out Evergrande.
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I have pretty severe concerns about how the Chinese government operates, but this is one thing they do right.
I have pretty severe concerns about the way the American government operates.
We have traded the literal genocide and opression for corporations performing economic genocide and opression on us.
But hey, aren't billionaires cool?
Fun fact: his last name means a 'dick' in Polish (the most vulgar version of that word).
Not only in Polish. Pretty sure it's most of Eastern Europe. 🤭
Gee it sure sucks that Evergrande collapsed. What a horrible sign for the Chinese economy!
Man all these bad news about Chinese property market, hopefully there isn't a collapse there as predicted.
Chinese do not fool around. I expect they will make an example of this guy.
Now do Ken Griffin
He is fucked.. he is a dead man..
How do you recover that? How the hell are they going to recover what is essentially multiple time the sum of the wealth of all the top 10 richest individuals on earth???
multiple time the sum of the wealth of all the top 10 richest individuals on earth???
Do you mean the $78B fine or the $300B debt?
In either case, you're way over exaggerating. All of the top 14 wealthiest people have over $100B each. Jeff Bezos (#2 richest) has close to $200B alone.
It's even worse than I thought......... Holy fucking shit.
Right!?
These people have more wealth than the GDP of some nations.
Jeff Bezos has more wealth ($190B) than the GDP of Ukraine ($170B).
Presumably they won’t recover, because the Chinese state isn’t coming to their rescue: China’s housing minister says real estate developers must go bankrupt if necessary
I just hope the collapses won't pull others with them and the whole construction sector. I think the fear of that and the effects rippling to other sectors and to trust in the economy is why bailing out is sometimes done.
yes, it's a good reminder that capitalism doesn't actually work and needs to be propped up with bailouts to ensure it doesn't collapse and gets replaced.
Well China is trying to not bail them out, at least for now. And some others have done it before too. It's just people fear the risk of doing that, hoping that by bailing them out things won't be as bad.
Except that the Chinese national government is trying to reign in the domestic construction market and export as much as it can.
It was the right strategy to keep building for a generation, but it isn't right strategy any more.
I've read that they're trying to lessen the share of the GDP but an uncontrolled crash would still be horrible. Hopefully whatever they do that is avoided.
It is more than that. China significantly invested in infrastructure for a generation, which was generally good. However, China has hit a point where infrastructure investment won't produce the returns it used to or any at all. China also needs to figure out a way to find municipal governments, which it hasn't before. China also has to deal with a significant drop in economic growth, something it hasn't dealt with for a generation.
These are novel problems for the Chinese government.
By locking up the rich, seizing their wealth, and using SOEs to take over incomplete projects for pennies.