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For Firefox users, there is media bias / propaganda / fact check plugin.
https://addons.mozilla.org/en-US/firefox/addon/media-bias-fact-check/
- Consider including the article’s mediabiasfactcheck.com/ link
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Can someone ELI know nothing about the Chinese financial/real estate market? Is this China's 2008 moment?
ELI5 about the Chinese real estate market in general? This is how they got to where they are today:
I am not an economist and cannot offer insight as to whether this would turn into an 2008 moment... Nevertheless, I am aware that Soho is an extremely well-known developer, and that the Chinese economy is to a large extent built on top of real estate. And despite how much I dislike China, it is one of the world's largest economies, and large economies don't just go belly-up without inflicting heavy damage on the whole world... So this is not good news by any means.
That was a really good explanation of things.
People have been talking about this stuff since about a year ago
Overall it is a bunch of dominoes that keep rippling into China's economy and by extension the US that doesn't seem to be getting better, but circling the drain.
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Good bot!
Yikes. Thanks for that. I knew there was some rampant speculation going on, but I haven't had time to really dig in.
Currently the real estate market seems to be on very shaky grounds as developers have debts that they're not being able to pay off. So bonds whose coupons are due are not being paid.
Chinese citizens generally pay up front a certain amount (or fully) long before they move into their apartments. This money is generally used to complete construction. But developers seem to have used this to buy other properties for construction, over leveraging themselves. And now that construction is wayyy behind schedule and the people still can't move in, they're refusing to pay their mortgages causing banks to pull back lending and become more strict with debt restructuring for developers.
Tldr: Way too many homes built for people who don't want them. Lots of loans might be unpaid. Might affect other sectors.
Thanks!