Comments by "Louis Giokas" (@louisgiokas2206) on "The Chinese Housing Crisis: Evergrande’s Bankruptcy || Peter Zeihan" video.

  1. Excellent take on the issue. The aspect that was left out was the role of local governments. Property sales to these developers have been one of their largest sources of income. They have used this to build a lot of the infrastructure projects that the central government has pushed on them. On top of that, the money that flows through this system is a major source of corruption. So, not only are the average people affected, but the party officials and their cronies would be screwed. Add in the probable involvement of criminal gangs, and Xi has more to worry about than the common people. Oh, and the whole financial system, bank and non-bank, is underpinned by the property sector. If they used mark to market accounting, all the banks in China would be insolvent. Default rates are though the roof. To add insult to injury, 60% of loans for Xi's belt and road initiative are nonperforming. The Chinese courts are NOT big on rule of law. In fact, one of their top judges (the top judge?) said that the role of the courts was to support the CCP. The rule of law was, at best, a secondary consideration.
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  2.  @crosslink1493  I have seen claims that something like only 20% of allocated project funds are actually spent on the actual project. Even if it is twice that amount, it is bad.
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