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Forum » Could Evergrande be the new Lehman Brothers?
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Thread: Could Evergrande be the new Lehman Brothers?

post 1647340923 09-19-2021, 09:31 AM
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  1. katya422
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Could Evergrande be the new Lehman Brothers?

Chinese property giant Evergrande is on the brink of collapse After expanding rapidly for years and snapping up assets, this property developer is now snowed under a crushing debt of $300 billion.

The world’s most indebted property developer has been scrambling to pay its suppliers, and warned investors twice in as many weeks that it could default on its debts.

On Tuesday, Evergrande said its property sales will likely continue to drop significantly in September after declining for months, making its cash flow situation even more dire.

The Chinese developer is so huge that the fallout from a potential failure could hurt not only the Chinese economy, but spread to markets beyond.
https://www.cnbc.com/2021/09/17/chin...tor-risks.html

Potential $300 Billion debt default and what looks like a "bank run" in videos of Chinese people demanding their money back.
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post 1647340963 09-19-2021, 09:33 AM
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  1. mellowfellow01
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never once seen Chinese media put out anything negative about economics, but they are sure pumping this up.
post 1647342733 09-19-2021, 10:13 AM
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  1. katya422
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Originally Posted By mellowfellow01⏩
never once seen Chinese media put out anything negative about economics, but they are sure pumping this up.
Very little news out of China shows up in US mainstream media. Usually just little pieces about specific events, or dull business news.
"Some fear an Evergrande meltdown will have systemic risks on par with the impact Lehman Brothers' demise had on the US stock market," Ed Yardeni, president of Yardeni Research, wrote in a note to clients Thursday.

Like Lehman in its heyday, Evergrande is massive, suggesting a default would be felt widely. The company has 200,000 employees, raked in more than $110 billion in sales last year and has more than 1,300 developments, according to Reuters.

The US Treasury Department declined to comment on the Evergrande situation.
https://www.cnn.com/2021/09/16/busin...ina/index.html

^^^
General idea from the above article is that it won't spill over into the US economy and that the Chinese government will prevent the failure [bail out].

For those I've seen chattering about contagion it seems like it would hit AUS maybe more than the US, but there was also a conversation about Chinese investors possibly divesting themselves of property held in other countries like Canada and the US.
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post 1647342833 09-19-2021, 10:15 AM
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  1. Saiyanbrahh
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Reading paras make me dizzy, cliffs
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Holocaust denial is illegal in over 18 countries. if an organized killing of jews happened so definitely, why would people need to serve prison sentences for questioning it?
post 1647343433 09-19-2021, 10:25 AM
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Chinese dude had the worlds largest recorded wealth drop last week.

Just imagine losing 28billion in one day and not offing yourself
post 1647344463 09-19-2021, 10:46 AM
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Chinese economy is in a lot of trouble, but you don't hear about it because China owns MSM.

BlackRock are in there right now buying up all sorts of equity for nothing.

Why do you think Xi is beating the drums of war.
post 1647345083 09-19-2021, 10:57 AM
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Originally Posted By GeezersPalace⏩
Chinese economy is in a lot of trouble, but you don't hear about it because China owns MSM.

BlackRock are in there right now buying up all sorts of equity for nothing.

Why do you think Xi is beating the drums of war.
Black rock AUM has grown over 3 trillion in less than a year. They will own everything.
post 1647351193 09-19-2021, 12:46 PM
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  1. katya422
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Originally Posted By Duckliver⏩
Black rock AUM has grown over 3 trillion in less than a year. They will own everything.
How crazy is this?
Originally Posted By Saiyanbrahh⏩
Reading paras make me dizzy, cliffs
China has been in a ridiculous RE bubble- chart is comparing income to housing expense:



A massive real estate developer has lost 82% of their stock value and appears to be in danger of BK. $300B outstanding would be equivalent to about 3 big companies failing.



They have a lot of ongoing/incomplete projects that are shutdown because they aren't paying suppliers. The AUS$ has lost value reportedly as a result of this Chinese real estate turbulence.

IIRC bonds are usually considered safer investments and are often held by big investors like pension funds.
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