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View Full Version : Lehman brothers Part II - China Edition (Evergrande)



thepatriot2705
09-08-21, 00:07
https://www.zerohedge.com/markets/default-appears-probable-evergrande-drops-below-2009-ipo-price-after-fitch-triple-downgrade



One of these days, someone will finally put China's largest and most indebted property developer, Evergrande - which has been teetering on the verge of insolvency for months - out of its misery. While that day is not here yet, Fitch just hammered another nail in the coffin of "China's Lehman" with a 3-notch downgrade which saw the company's long-term foreign currency issuer rating drop from CCC+ to CC (D is just one letter away), and which saw the rating agency say that "default of some kind appears probable" as the company struggles to address its worsening liquidity issues.



So, does this partly explain the insane housing market over the past year?
Does China bail them out? Do they let them collapse to cause instability around the world financial markets to claim position as number 1 economy?

Great reset trigger?

TomMcC
09-08-21, 00:24
Not sure how a strictly Chinese company doing real estate in China would affect us or our housing market or trigger a reset. Let them and the CCP reap what they have sown.

Diamondback
09-08-21, 00:26
https://www.zerohedge.com/markets/default-appears-probable-evergrande-drops-below-2009-ipo-price-after-fitch-triple-downgrade






So, does this partly explain the insane housing market over the past year?
Does China bail them out? Do they let them collapse to cause instability around the world financial markets to claim position as number 1 economy?

Great reset trigger?

Might be worthwhile to look up their assets and start watching for distressed properties once they implode... then again, that could be the start of Bubble Burst, and while they ain't exactly makin' more land it's not like you can EAT it when the pantry runs bare.

thepatriot2705
09-09-21, 00:08
Not sure how a strictly Chinese company doing real estate in China would affect us or our housing market or trigger a reset. Let them and the CCP reap what they have sown.

Chinese investors selling Chinese properties and rolling the proceeds to American real estate?

TomMcC
09-09-21, 01:05
Chinese investors selling Chinese properties and rolling the proceeds to American real estate?

Maybe, I just don't know. If they are, it seems they're draining some of their economy, pumping into ours. I suppose that money could be pumping up house prices.

sidewaysil80
09-09-21, 11:37
In my market (DC/VA) the market is crazy due to low interest rates and an abundance of well QUALIFIED buyers. The bulk of people buying in this market (covid) were taking advantage of rates and buying their forever home and getting it at crazy low interest. Because of said demand people were paying over asking and bidding on houses. With that, every time that happens and the deal goes through the nearby houses appraise higher due to first houses over asking price. We may see some stagnation in equity as the market slows down, but unless people start foreclosing en masse, the home values are secure.