Comments by "Twomix" (@twomix1822) on "How Chinese cope with the Evergrande crisis; if our real estate bubble is related" video.

  1. There is no saving Evergrande. 4 out of 5 top real estate companies in China are under financial distress. If they save one, many will demand that they be saved too. The government doesn’t have the financial capacity to save all of them. As one geopolitical analyst puts it “the western governments views wealth as a morale and societal good, the Chinese government government views wealth as a political good.” What this means is the PRC doesn’t care about making good financial decisions as long as the outcome net them political benefits. It doesn’t mean the PRC government totally does not care about financial well being of the country, they care because when people’s lives are negatively affected they tend to rise up against the regime and social and civil unrest happens. This is why the PRC has so many financial scandals caused by short sight decisions that often has decades long implications.
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