In the developing story of Evergrande’s collapse, investors are watching to see what will happen. There are a few points of concern, including a collapsing real estate market in China and a severe drop in consumer spending. On the other side of the pond, the Federal Reserve may use this as an excuse to delay tapering and keep that printer running at full speed.
Sources:
Use Interactive Brokers
My Courses and Guides🍎🍎
💰My Options Course (Beginners)
💵My Options Course (Advanced)
🔑My Ultimate Guide on How to Buy Gold
📝My Weekly Newsletter
Gold and Silver🔥🔥
📱Buy Gold/Silver Bullion
🔒Store Allocated Gold/Silver (Get $5)
🪙Gold/Silver IRA (Get 1st Month Free)
Bitcoin 💎💎
🔐Best Bitcoin IRA (Get 1st Month Free)
🦢Best Place to Buy Bitcoin (Get $10 BTC)
🏪Best Bitcoin Exchange
📟Best Bitcoin Wallet
Stocks💰💰
💹Best charts (Get $30)
📈Best all-around
📊Best auto investing
📉Best margin rates
Invest in Startups (not publicly traded) 💵 💵
📊Republic
🌱SeedInvest
👼Angel List
Real Estate 🚀🚀
🏠Single-Family Rentals
🏚Borrow for RE Development
🏡 Invest in High-Yield RE Debt
🏘RE Portfolio Investing
Misc ⚖️⚖️
🪜Life Insurance
🏥Short-Term Health Insurance
🎓College Savings Plan
📖Book Insights and Summaries
💻Learn to Code
🍎Skillshare
🏦 Small Business Bank Account
My Trading/Investing Gear🛠🛠
🖥Thunderbolt Monitor
💻M1 MacBook Pro
📶Best WiFi Router
🔊Speakers
📲M1 iPad Pro 12.9inch
⌨️iPad Magic Keyboard
✏️Apple Pencil
📚Incerto
Support the Channel💪🏼💪🏼
💸Patreon
☕️Merch
🤝Join as Member
I am not a CPA, attorney, or licensed financial advisor and the information in these videos shall not be construed as tax, legal, or financial advice from a qualified perspective. Linked items may create a financial benefit for Heresy Financial.
#china #evergrande #crash…(read more)
LEARN MORE ABOUT: Bank Failures
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
HOW TO INVEST IN SILVER: Silver IRA Investing
The financial world has been closely following the developments of China’s embattled real estate giant, Evergrande, as the company continues to struggle with mounting debts and potential default. Despite fears of systemic risk and contagion in the financial markets, Chinese authorities have yet to announce a bailout for the company, causing concerns about the potential ripple effects of a potential collapse.
Evergrande, one of China’s largest property developers, has been grappling with a debt burden of over $300 billion, raising fears of a potential default that could have wide-reaching implications for the broader economy. The company’s troubles have sparked concerns of a Lehman Brothers-style collapse that could trigger a financial meltdown and spillover effects across global markets.
The Chinese government has been closely monitoring Evergrande’s situation but has so far refrained from stepping in with a bailout package, leading to growing unease among investors and creditors. The lack of a clear resolution has raised fears of contagion spreading across China’s real estate sector and the broader financial system, as investors and creditors remain uncertain about the potential fallout from Evergrande’s potential default.
The uncertainty surrounding Evergrande’s fate has led to a sell-off in Chinese stocks and bonds, as investors brace for potential losses and increased volatility in the market. The company’s woes have also raised concerns about the broader implications for China’s economy, which has been a driving force of global growth in recent years.
The Chinese government faces a delicate balancing act as it weighs the potential risks of a bailout against the potential fallout from a disorderly collapse of Evergrande. On one hand, a bailout could help mitigate the immediate impact on the financial system and prevent a wider financial contagion. However, it could also set a dangerous precedent and raise moral hazard concerns by bailing out a highly leveraged and poorly managed company.
In the absence of a clear government intervention, Evergrande has been scrambling to raise funds and fend off potential default. The company has been selling off assets and seeking financial support from strategic investors, while also facing increasing pressure from creditors and suppliers.
The lack of a clear resolution to Evergrande’s troubles has heightened concerns about the potential ripple effects on global markets and the broader economy. International investors and businesses with exposure to the Chinese market are keeping a close eye on the situation, as they assess the potential impact on their own financial stability and investment portfolios.
The unfolding drama surrounding Evergrande serves as a stark reminder of the interconnectedness of global financial markets and the potential risks of a potential default by a major player in China’s real estate sector. As the company’s fate hangs in the balance, the world is closely watching to see how Chinese authorities will navigate the delicate balance between managing systemic risks and moral hazard concerns. In the meantime, the lack of a clear resolution continues to fuel fears of contagion spreading across the financial markets, as uncertainty and unease continue to roil global investors.
Still funny how everybody makes connection between evergrande and tether while the source of this info is thin air or somebody's tweets
It seems that are unaware of the 2013 Papal Bull issue by the Pope telling the President that The Sheriff's were to take over All Law Enforcement Duties and that The UNITED STATES CORPORATION of AMERICA LLC INC is to Cease and Desist.
The 2nd Great Depression is upon Us and many do not comprehend what the significance of this means, for The Great Reset to take place many facets of Society has to change starting with the number of people that Inhabit the WORLD, the types of people that Inhabit the World( useless eater's) as the ELITE refer to them, the Fiat Currency System has to go, so Digital Currency will be the New Currency that No One will never touch. The supply chain is broken and the ports are NOT receiving Goods people will be hard hit with what has been set in motion with the Great Plandemic of 2020.
As with the 1st Great Depression many people will become Filthy Rich cause when there's Blood in the Streets, Buy, and the New Currency has to displace the Old Currency System, as it was with Gold and Silver, it will be from The Fiat Currency System to the Digital Currency System and they do it again in 70-90 year's from now, cause HisStory teaches us that a Fiat Currency System is only good for 100 year's.
All of the commentators claiming that there will never be any contagion effects as the world’s second largest economy melts down are apparently full of baloney. They should be required to disclose their or their companies’ financial interests in China. Their crazy “logic” is ridiculous.
Contagion is ultimately inevitable (because people in China have put most of their savings in real estate, whose price will decline as ordinary Chinese realize that their CCP, real estate developers are Ponzi schemes and sell tofu-dreg real estate with enormous, fundamental defects) when ordinary Chinese realize that the real estate that the CCP conned them into buying is worth much, much less than what they paid (or were paying) and has a very limited lifespan due to its poor construction. Which ordinary Chinese will now want to again work long hours for years and pool all of their families’ savings to buy an Evergrande or other developer’s apartment, after Evergrande and others sold their real estate for 50% or more off?
Ordinary Chinese have also realized that the second part of the con is that the CCP, real estate developers build their properties with defective, very cheap materials to MAXIMIZE the CCP developer’s profits, so those tofu-dreg properties actually built are falling apart already due to wind, etc., only a few years after being built. The CCP can fool some of the people some of the time; they cannot fool all of the people all of the time.
Hence, expect that prices will continue to rise on many goods, because we are now talking not just about monetary inflation but inflation caused by fundamentals: reduced supply, increased shipping costs, etc. Decreased demand as a result of economic disruptions and thereby, reduced income may limit price rises on other goods.
To be fair, the CCP's moronic leaders bear most of the blame for the disruption to their country's supply chains. They started a trade war with Australia, etc., that deprived them of iron ore, etc., and their keeping international borders open which infected other countries and lying about a plague to mislead them into not taking enough precautions may be causing other countries to now covertly retaliate, e.g., by messing up China's supply chains.
(Not to mention that the plague that they sent into the world turned around, bit them on their posterior, and is still chewing on them and tearing up their economy in a way that a crocodile would admire.) The Chinese real estate developers cons (by CCP members) were always Ponzi schemes, but that characteristic might have been covered up for longer but for the economic disruptions caused by the pandemic. Now ordinary, non-CCP, chumps are on to the con.
The CCP's welding of any potentially infected people into their homes to die tactic is also becoming less and less effective. This delta variant is so very infectious, that I predict that China will eventually give up on its attempts to control its spread.
Think of what that means: their vaccines are only 50% effective, so given the known death rates, once they have to give up as outbreaks keep flaring up all over for months, what will be the final toll among over a billion people? Their current efforts might only be prolonging the disaster.
Their economy will suffer grievous harm for months or even years as their old-fashioned, ineffective vaccines cannot keep up and plague casualties literally pile up. After their recent actions, most of their neighbors will watch this with alternating glee and sympathy.
Hence, expect products from China to be reduced in supply and thereby rise in price.
Is this similar to the real estate S&L crisis in Texas from the 1980's?
CCP will use this to further control people. Welcome to communist.
$ 300 billion losses is nothing to china. China is very very rich. these are just only small changes for china , do not even have to pay anybody.
Yeah, regarding Bloomberg terminal you can see that western banks aren’t highly invested in Evergrande (because of Chinese protection policy for foreign investors), means this will be a Chinese problem. Of course the decrease of Chinese economic can lead to a decrease of revenue in western companies, but nothing major. So only investments in Chinese ADR’s (ADR’s are illegal anyways regarding Chinese law, worthless paper you could say) could be a problem, because China could try to close the gap between real life economy and the big stock players with regulations.
I like what you do.. Prepare my friend…
Wow I enjoyed this video tho, Forex trading has been really difficult for me to understand but my life has been better after Mrs medline came into my life, she helped me grow my profit and thought me how to trade on my own.
China investors moving to gold
The bailout is already announced right. Local lenders will most likely be paid.
Central Planning is bad – Evergrande. Not Central Planning Good – 2008 Mortgage Crisis. $28 Trillion National Debt. Fed in a Corner – no interest rate hike until the year 3000, Taper freak out. Debt Ceiling fight Every Year. Wonderful to have No Central Planning.