Wtf is happening in China

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    Posted by neda6117

    31 Comments

    1. All there savings are in real estate and real estate is crashing (edit this is what I’ve gathered from little info and is a very basic response do more research if interested)

    2. Keep in mind they reworked the survey methodology in January 2022 for the Consumer Confidence and this caused the huge drop you see.

      Before the January 2022 reworking, the survey put no weight on future expectations. They only asked about current conditions.

    3. Can’t say it’s a crash already. Just not much confidence with more high potential economic growth compared with what happened in decades. Even the most bullish bulls won’t predict that will continue for decades. So people are saving in case there is a real recession happening.

    4. Xi fucked everybody’s shit up over there and gave us the Kung Flu all because he’s an asshat. Bro thought he was actually somebody

    5. People’s last bastion of holding wealth which was property collapsed. High unemployment and it’s even worse if you don’t count those making under minimum wage as delivery drivers/flexible emplyment. Negative foreign investment this year because of Xi and COVID fiasco.

    6. Prestigious_Yak23 on

      2008 dobbs? Chinas facing that X100 because they built without butters to prop up the economy a house of cards

    7. Have you heard of “the news”.

      Super interesting hack that let’s you know what the fuck is going on.

    8. I wrote a bunch of DDs about how fuk China is, then they managed to delay the reckoning by three years. Which makes the coming revolution worse. CCP is cooked, but right now they’re firing money bazooka so calls.

    9. Longjumping-Ad8775 on

      I think there is a real estate crash happening there.

      I’ve been reading where they appear to be buying lots of gold.

      I got nothing beyond that.

    10. Temporary_Ad_5947 on

      The Chinese seem to have a long standing history of making decisions, that on the surface, are good but taking that decision to the extreme. This leads to unforeseen fall outs.

      Killing a bunch of birds.
      1 child policy.
      Massive investment into real estate.
      Lock downs.

      It will be interesting to see how today’s decisions play out over the years.

    11. A lot of money shifting out of the country to elsewhere. US stocks and US residential real estate continues to gain from it.

    12. Article came out on xi killing the financial sector and white collar workers. It’s a good read.

    13. Housing crisis.

      More then 50% drop in value in alot of cities.

      Source : Got family in china and work in a chinese restaurant full of chinese employees.

    14. Gee, could it have something to do with witnessing huge half-built housing blocks being torn down before they’re ever completed?

      Was that in the five-year plan?

    15. Infinite-Chocolate46 on

      1. Housing crash

      2. Plummeting foreign investment

      3. Geopolitical tensions with the US and lesser extent the EU

      4. Central government was previously unable, or unwilling, to launch a massive stimulus to shore up the economy

    16. The real-estate prices were insane for what amounts to leases. There was no rhyme or reason to the pricing or valuation. A tiny condo in shanghai 5M USD? Why the F would anyway buy that when they can buy SF NYC or any other place? The only ones were those already rich and have disposable incomes and they kept the party going keeping prices high for no reason when the average chinese person cannot afford anything close to that.

      Then like what the diamond industry did to the US, capitalism made it so that if a chinese man wanted to marry a chinese woman you need to buy a house as a requirement. So these kids/parents of the groom would be mortgaging their own houses so that they can afford to give it to their sons to get married. Since the 1 child policy there are tons more men than women so the women made it a requirement to the relationship. Chinese women was never like this before, but they take their cues from western media and became what it was. So people are getting married because they have a piece of paper (or red book) saying they own a house even if the house is being built and not constructed yet. Why? Because capitalism, 1 child policy, social media and western influences.
      So what do these corps do? they follow the money and kept building as fast as possible. And what does the supplier do? make more building materials sometimes at sub par standards to crank out as much as possible.

      Combine that with the global cooling of economies and trade. Aggressive stance on their neighbors and predatory “joint ventures”, belt and road, lending money/building infra for poor nations to entrap them and COVID. It was a thousand cuts, some deeper than others, but they all contributed to this. And technically unlike US 2008, China has not crashed yet but it is a slow moving train wreck. Could they save it? Yes but it would take a lot of capital and pain.

      I am not sure how to trade this, you need good builders but this crash will impact them as well… the only thing I can think of is maybe heavy industries and war/defense.

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