Comments by "D W" (@DW-op7ly) on "Wall Street Millennial" channel.

  1. China was cracking down on Property Developers in 2010 By cutting off money flow to them That created those Shadow Banks we all heard about a few years after. Just rich Chinese lending money to an obscure bank/investment vehicles who lent that money to the Property developers Just recently we are only hearing about this in American and Hong Kong courts. Because a few years ago the junk bonds of these property developers suddenly started to become a hot commodity. By Sophisticated Foreign Investors The idea was the Chinese Central Government would ultimately backstop these Property Developers junk bonds After a decade of the Chinese central Government cracking down on real estate
    1
  2. They are adding 4 to 6 trillion a year to their wealth
    1
  3. US government allowed drugs in its inner cities so they could arm the Contras in Nicaragua...
    1
  4. China the bad guy... When Nixon went to China in 1972 to get them to open up their economy to trade? It was just 10 years after the Great Leap Forward and right in the middle of the Cultural Revolution, where 10s of millions upon 10s of millions met their demise. Yet we spent the last 50 years buying g the gadgets made off the labour of 100s upon 100s of millions of migrant workers paid dollars a day in wages. Must be nice to be suddenly.... Woah Oak snow flkes about it now
    1
  5. China was cracking down on Property Developers in 2010 By cutting off money flow to them That created those Shadow Banks we all heard about a few years after. Just rich Chinese lending money to an obscure bank/investment vehicles who lent that money to the Property developers Just recently we are only hearing about this in American and Hong Kong courts. Because a few years ago the junk bonds of these property developers suddenly started to become a hot commodity. By Sophisticated Foreign Investors The idea was the Chinese Central Government would ultimately backstop these Property Developers junk bonds After a decade of the Chinese central Government cracking down on real estate
    1
  6.  @luipaardprint  The writing was in the wall in 2010 when the Chinese Government cracked down on real estate/speculation In China in 2008 around 70% of the people in their real estate markets were buying their 1st homes in their cities By 2018 around 70% of the people in their real estate markets were buying their 2nd and 3rd homes in their cities That’s why you are hearing about problems with their property developers these days. Because back in 2010? Their Central Government started cutting of money flow to these developers. Thus why you heard about Shadow Banks and Underground Economy back then, that their Government had to come into to shutdown or regulate. Even then, It took them almost 14 years to get their overheated real estate under control Heck they were about to introduce a nation wide property tax, but then trump started the trade war in 2018 Why is their Central Government doing this? Because there are still a few hundred million poorer rural folk they still expect to move to the cities to join their more well off urban city folk countrymen. Problem is these property developers were building higher end homes, and not building the affordable homes these rural migrants will need In China Owning a home in the city you migrate to? Affects your employment, health, education and even marriage prospects don’t have a house you don’t get married Thus the common prosperity push and the crackdown on the overt displays of wealth in China Their Government probably figured out you disenfranchise the people at the bottom of your society they are the ones most likely to act out in protest
    1
  7.  @luipaardprint  the solution should be simple in China the last few years property developers went on a building spree in higher end homes So the people they owe homes. Can be given one of those higher end homes (although the home might not be in a city/province they like… but beats getting nothing back… on a risk they willingly took) The remaining homes can be sold at a discount to the few hundred million rural migrants still expected to move to the cities And the wealthy Chinese/sophisticated foreign investors who took the biggest hit these last few years (You invest more money into overheated market with Property Developers? They naturally do what they do best they build even more) Well they get back a few more pennies on their investment Cut off from money flow by the Chinese Central Government for over 12 years starting in 2010 Chinese Property Developers “Junk Bonds” they were flogging, these last few years suddenly started to become a hot commodity by “Sophisticated Foreign Investors” The general consensus was the Chinese Central Government would backstop these junk bonds I actually had a few old colleagues reach out to me for advice from back in my investment banking days.. Since they knew I had been researching China investments since the late 1980s My reply to them was “Not when their Government has cut off the money flow to these companies for over a decade” They did not listen….🤷 👇 A 99% Bond Wipeout Hands Hedge Funds a Harsh Lesson on China Bloomberg) -- From afar, China Evergrande Group had all the makings of a killer distressed-debt trade: $19 billion in defaulted offshore bonds; $242 billion in assets; and a government that appeared determined to prop up the country’s faltering property market. So US and European hedge funds piled into the debt, envisioning big payouts to juice their returns. What they got instead over the course of the next two years is a harsh lesson in the dangers of trying to bargain with the Communist Party. The talks are now dead — a Hong Kong court has ordered Evergrande’s liquidation, and the bonds are nearly worthless, trading in secondary markets at just 1 cent on the dollar. Bloomberg
    1