Evergrande Is A Distraction For A Much Bigger Crisis Happening In China Right Now!
Evergrande Is A Distraction For A Much Bigger Crisis Happening In China Right Now!
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Love your thinking and your analysis you look beyond the smokescreen 🤨🤷😃 From the Wild Wild West California's Central Valley
Anyone with a brain can see this is a war economy emerging.
It's a regime problem and driven by the regime motivation.
Because you are coming from financial background you focus on the financial aspect of this tragedy (now is more like economic crisis, in the future it will be a massive tragedy. At least in the history such a political moves had always end in tragedy)
Bang on with backdoor nationalisation, but I doubt that the CCP bandits will let go of their foreign investments and loan trap acquisitions.
How all of this lil guys that don't brake a sweat got so much money???
Billions here trillions there and when I get my check all I see is pennies!!!
WTF
1:15 Hong Stong Stock market lol – love the vids man
This guy getting information about China economy from western MSM is futile. A complete waste of time. Beware , don’t be fooled by Michael Invests!
I believe the west is mainly responsible for propping up the communist country to make as a world power. Instead of alerting the people on lack of openness and rule of laws the media started singing praises about Chinese economy and huge rise in GDP and the prosperity it brought to the nation, it appeared that no serious study was conducted by the so called great economists on how Chinese economy is functioning, it looked like the western media also became a part of Chinese propaganda. We do not know the ripple effect from the sudden fall of Chinese economy especially to the international financial institutions which have exposures to these Chinese companies. It's possible that Institutions like pension funds as well as individual investors have also exposure to Chinese bond markets and if these bonds become junk the fall out will be much more than one can imagine. Unfortunately the western countries appears to be awed by the Chines economy without actually considering the fact that China is open only for investment without having proper checks and balances . If the democratic world has a problem dealing with North Korea how is this country different from China?
Well, these tech giants are and always were a product of the CCP, you just can't be that naive to believe China didn't know Evergrande was a ponzi scam..
Heinz beans ,remeber what im saying ,heinz beans best investment at a moment 🤣👍
Keep them poor chinese style. it is strange to read old chinese book and see how ccp deals in politics. if book says that no one can be reacher then emperor, Winnie does exactly this and puts that lil dude down.
I’m not sure I agree. I don’t believe evergrande is the issue or tech leads to the downfall. It’s the actual realestate market in China. U have 700-900 million Chinese investors in realestate. That’s 70% of China losing 50+% of their net worth and borrowing power because their realestate is worthless.
The question is: who owns the debt. If the debt is mostly owned by entities outside of China then China can simply let the outside world take the hit. Most likely the Chinese government saw this bubble growing a long time ago and has a plan to pop it in a way that benefits China. Now, do other countries have a plan to pop their own debt bubbles?
Say goodbye to the China linked-based investments and bonds, not only profits gone but principals burned. 😓
If they can cover this bubble with another bigger bubble, then everything is fine until they no longer to pull the same trick down the road.
Nice video well done explaining a quite complex and multifaceted issue in layman terms. Will be interesting to see how the East fights of crash vs West and they different results. Yup CCP wants to take over but realize this will eventually happen in the West one goal of the Great Global Reset is to to take away ownership and you will rent everything Their quote is "You will be happy owning nothing" You cant even buy certain software like Microsoft Office you have to pay monthly / yearly subscription. Microsoft Windows will eventually become subscription based. Owning a car will disappear will lease forever. Forget owning a home you will rent it forever.
Australians are so freaked out by China.
What was Jack Ma caught doing I wonder?
China, the linchpin of the worlds economy. Yep, all the eggs are in one global basket.
Great content. New sub!
One question I have that I have not seen addressed is how much of the actual real estate in the Chinese market is un-usable? How many of the living units are un-livable and beyond hope of redemption? I have been hearing about the "tofu dreg" construction practices, I have seen videos (Serpentza and Laowhy) where a finger can be inserted into the concrete of recently-built structures and the concrete can by pulled away like pudding. I know that a LOT of these dwellings are investments that are never actually seen by their owners and that there are about 50 unoccupied huge cities in China. I know that there are millions of dwellings that have been sold but never built. I have seen videos of entire outer walls of buildings just falling off due to shoddy construction. This house of cards is not going to help the Chinese financial markets when these issues come to light.
"Hong Stong Stock Market" Love it !
The problem is the Chinese are habitual liars. The lie about everything you can’t make a deal with a liar That’s why I never invest with them.
Nothing new underneath the sun.
Holy smokes people! This is bigger than anybody could've imagined.
You are just blowing FUD
Sorry to say it but about half of the video is plain wrong.
1) the government set the destruction of evergrande in motion over an year ago well knowing what it would have happened. China property market needed to be deflated and this is what they are doing. Preventing a crash. Not making it happen.
2) the idea that evergrande will take down Chinese banks is a joke. Banks in China are all state owned of they lack liquidity the government will add more liquidity.
3) the amount of debt denominated in USD isn't large for the vast majority of Chinese companies and the usa has been printing money much harder than china making the RMB rise against the usd substantially in recent months. China wants a slightly weaker RMB to push exports. But it in a negligible factor in your dooms day scenario.
4) the cracking down on tech and private schools is political and bad but it's already happened and the consequences outside those sectors habe been very limited.
What will happen?
Exactly what the Chinese government wanted.
A limited devaluation of Chinese real estate and cooling of that sector ultimately deflating that bubble instead of bursting it.
A few Chinese real estate companies will become state owned with foreign investors getting screwed and local investors and buyers getting mostly or partially saved.
The death of private Schools will allow better indoctrination of the Chinese youth and limit the cost of raising a child, following in line with the reversal of the one child policy as china is becoming full of old people very quickly.
The tech sector will be allowed to grow but never to have the power of Facebook or Twitter which can even silence the american president without consequences. Any tech company with too large propaganda power will be strictly under the party control.
There will be no chain reaction or massive event, if share sell off happen too fast they will just freeze those stock indefinitely. If any bank has issues they will provide liquidity.
The target is simple. Make house prices semi stagnant until the average income grows to the point of those properties being more in line with the world standard.
Make rising children more affordable and easier (banning video games goes in this category).
Take full control on every aspect of media in order to fully control the people.
The lack of power from high energy costs is a more serious situation than evergrande.
moronic video. so superficial. sorry
🤣😂💰💰💰💰💰easy come easy go economy 🤦🏻♂️🤷🏻♂️
Same old story, properties collapse is common. And also US in 2008, Japan, Hong Kong… now China, so what?
All Ponzi schemes end like this
Look like ccp is trying to go back living the way it did 2000 years ago
Great video, does anyone know who are the heavy investors from the west and EU in these Chinese markets?