Evergrande Liquidation

[Anonymous No.57440510]

https://www.reuters.com/business/embattled-china-evergrande-back-court-liquidation-hearing-2024-01-28/

Peter Zeihan must be cooming right now.

[Anonymous No.57440527]

>>57440510
>load ze Evergrande fud

[Anonymous No.57440530]

>>57440510
lazy brainlet here. explain to me like im a lazy brainlet

[Anonymous No.57440537]

>>57440510
Instincts say that this is not as bad as it sounds. For a reference, the 2008 housing crisis had a lost of $2 trillion.

[Anonymous No.57440538]

>>57440530
China is about to suffer financial collapse.

[Anonymous No.57440543]

>>57440530
Some chinamen done fucked up and some people are gonna lose their heads.

[Anonymous No.57440568]

>>57440530
Milkshake, coming back home

[Anonymous No.57440576]

I can't see how this could affect crypto in any way.

[Anonymous No.57440580]

>>57440510
Riced in

[Anonymous No.57440582]

>>57440510
bullish on china when they get access to all the capital evergrande likely was poorly managing at the detriment of the consumer

[Anonymous No.57440594]

You only made this thread because of me.

[Anonymous No.57440624]

Ok, but how does this affect XRP?

[Anonymous No.57440627]

>>57440580
Kek

[Anonymous No.57440631]

They did this to stop the chainlink rally. As soon as link pumped just a little bit they shut it down

[Anonymous No.57440642]

>>57440594
I know

[Anonymous No.57440692]

maybe i can now afford lee kim vip oyster sauce

the price of fine xuangshing wine and oh yes, chili crisp go down

ching ding

[Anonymous No.57440694]

>>57440537

There was also a chain reaction in 2008 after Lehman Brothers failed. The question is if Evergrande is China's Lehman moment. It's not like this is one poorly managed company gone bankruptcy in a vacuum, they're going down because China's entire housing market is on shaky ground, and Evergrande is one of many Chinese companies with exposure to that sector.

[Anonymous No.57440730]

>>57440530
chinks = fuxored.
Chairman Xi encouraged them all to buy property, quite a lot of which wasn't actually yet built. So when an overdebted property developer gets liquidated, stuff that doesn't actually exist does not attract a premium. So, lotta chinks gonna get a haircut. Plus knock-on effect for 200,000 employees, suppliers, etc.

[Anonymous No.57440739]

>>57440510
I work in China. China posting rn. The CCP just announced a massive stimulus package. The can is getting kicked down the road.
>nothingburger.jpg

[Anonymous No.57440776]

>>57440739
>The CCP just announced a massive stimulus package.
They've been trying to pick up their corpse of an economy for years with this stuff. There's no more production, there's no more can kicking.

[Anonymous No.57440785]

>>57440739
Their second largest property developer has $300Big due, 800 unfinished projects and no bank (or buyer now) is gonna touch them with a bargepole. How's a stim gonna fix that? They either need to nationalise EG or let the market sort itself out

[Anonymous No.57440806]

>>57440580
kek

[Anonymous No.57440848]

>>57440785
this

[Anonymous No.57440955]

>>57440580
Kekked

[Anonymous No.57441171]

>>57440580
lol

[Anonymous No.57441236]

as a priced out leaf, will this help or make things worse

[Anonymous No.57441261]

>>57440739
Yeah. China has collapsed like every 6 months over the past 20 years according to western media.
What really happens is the CCP hands stimulus to roll the previous bubble into another bubble.
Rinse and repeat.

[Anonymous No.57441269]

>>57440530
>Chinese do not have the same access to the stock market as the rest of the world. They are limited to investing in a few domestic banks based on different industries. However they are allowed to invest in property so they do that heavily. A lot will own multiple properties as it is the only way to see some return on your money.
>Evergrande is the largest real estate company in China. They would take deposits from people to build then properties, mostly apartments. You’d pay on your mortgage before you even had a home. A few years back they started running into financial trouble and cancelled construction of a bunch of houses people had already been paying into. That was the first crack. We are now at the point where they are completely insolvent. They owe more than they’ll ever be able to pay, and likely millions of Chinese who bought houses, paid deposits, and possibly have mortgages will never have their properties built.
>Tldr this is China’s 2008 housing crisis.

[Anonymous No.57441280]

>>57440806
deep strike into enemy territory

[Anonymous No.57441364]

>>57441261

It won't go down like it did in the US in 2008. They are going the Japan route and letting this fester for the next decade or two and basically let the bad loans burden the rest of the productive economy.

[Anonymous No.57441424]

>>57441269
living with america culture really mind fucked you into thinking owning a square box is the pinnacle to your existence huh

[Anonymous No.57441532]

>>57440576
If you can't see at least 3 ways you should not be in crypto. Also you are not as smart as you think.

[Anonymous No.57441545]

>>57440510
holy shit
happy chinese new year everyone.

[Anonymous No.57441565]

>>57440580
lmao

[Anonymous No.57441635]

>Hong Kong court
They will get overruled by some mainland court that kneels to Xi.
This is a certified nothingburger.

[Anonymous No.57441652]

>>57440527
call it fud or not it's not just a coincidence that a major 'stable' coin always depegs after news like this. I won't name it because then you will call that fud too.

[Anonymous No.57441658]

More hype than substance.

[Anonymous No.57441991]

>>57440580
cute :)

[Anonymous No.57442003]

>>57440580

[Anonymous No.57442133]

>>57441269
>when you suddenly realize that chinese banks dont do the traditional fractional reserve banking
>they do fractional imaginary reserve banking

[Anonymous No.57442168]

>>57440510
idk the play

[Anonymous No.57442188]

>>57442133
>when you realize that ours do too

[Anonymous No.57442192]

>>57441269
If this is china’s 2008, can it potentially ripple through worldwide economy and create some sort of black swan where everything dumps ?

[Anonymous No.57442249]

>>57442188
fuck

[Anonymous No.57442477]

>>57442192
Bro, we're talking about a few 100 billion in 2024 USD.
2008 saw multiple trillion in 2008 USD.

The amounts are very very different.

[Anonymous No.57442509]

Tether's commercial paper status? Last I heard a lot of it was intertwined with Chinese companies like Evergrande.

[Anonymous No.57442526]

>>57442477
>thinking Chinese accounting is legit.
It's going to be worse.

>>57442192
Yes, yes it will.

[Anonymous No.57442535]

>>57442509
>Load ze thether fud

[Anonymous No.57443396]

Not gonna lie, I just find it really funny that after so many months of people here saying that it wouldn't happen, that it has not undeniably happened, and they're now backtracking by trying to say it's just a nothingburger. You guys said that Evergrande wouldn't go under, and now it's gone under. You were wrong lmao! WRONG!

[Anonymous No.57443421]

>>57440510
For size comparison, MtGox is about to release ~$6bln worth of BTC
So, yeah, 300bln is a big deal

[Anonymous No.57443603]

>>57440580

[KG No.57443609]

>>57442192
While the starting gun will be residential property, the core issue is international institutions investing in the banks/ investment(shadow) banks and in chinese paper(company bonds) that will give out along the way, hence the global contagion. Let me explain:

>Chinese retail are limited to banks that in turn invest in different sectors, acting as pseudo-indexes
>Or property
>A gigantic proportion of purchases were speculative, from both Chinese retail, Chinese banks who offered loans to both investors and developers, overleveraged developers themselves
>And international interest from a wide range of sectors in bonds within chinese companies
>Many apartments were paid in advance of development, retail investors taking mortgages on properties that didn't even exist
>Many apartments went unoccupied that were completed (think shitcoin gambling al a hoping the apartment you purchased would be a popular zone), leading to a credit vaccuum towards banks and developers (the house) and away from retail, with a "wild west" created for bond holding institutions, some profiteering and others losing massively
>However, as retail could no longer keep an inflow of assets, and COVID impacting the global finance sphere at an institutional level...
>The ponzi fell apart
>Banks began losing on defaulted loans, Developers had less customers and struggled to meet demand against the vicious can-kick cycle of building new to pay the old, retail who indebted themselves for properties that simply do not exist do not even have a bag to hold
>The next step is bondholders across the world will be in deficit, not from the real estate sector, but from the banking bond sector, who had pretty much gone "all in" on property developers to follow the tide of retail going "all in" on property

Truely a cascade.

[Anonymous No.57443701]

Did we have a green day on the HSI just because they were trying to prop it up before the fall? I know this is going to affect the HK market, but how does this affect the West's trust in the Chinese market?

[Anonymous No.57443713]

>>57443701
People have been shilling about the impending collapse of china due to evergrande for like 3 years now. What makes you think this time it will happen

If anything, it's another nothingburger.

[Anonymous No.57443809]

>>57443609
But um I can fall back on repeating 2 more weeks and nothingburger, memes trump your argument!!!

God I love seeing this, you guys were WRONG about Evergrande not going under lmao!!! WRONG!!!! How does it feel to be so WRONG!!!! AHAHAHAHAHAHAHA

[Anonymous No.57443817]

Interesting that this happened on the terminability date for the Spirit/Jetblue merger.

[Anonymous No.57443926]

I think the only logical thing to do with this China Evergrande news is to short UBS.

[Anonymous No.57444061]

>>57443609
When you see 300 Billion in loans, the relevant question is who is the counterparty and who is going to eat those losses

it will all end up on a government owned distressed asset management company balance sheet, foreign bondholders get nothing and local bondholders will fight over who gets what

the real problem is that although Evergrande was the biggest risk taker, all major developers are in a similar position. putting any sort of number on those issues is immensely difficult but best guess is multiple trillions

[Anonymous No.57444063]

>>57440510
Slurpee

[Anonymous No.57444181]

Peter Zeihan just flew over my house!

[Anonymous No.57444296]

>>57440580
Kek

[Anonymous No.57444364]

>>57440510
$300b isn't shit in 2024