Comments by "Kevin Street" (@Kevin_Street) on "Another Evergrande? Fantasia Holdings Defaults!" video.

  1. Thank you for this great video! I am enjoying this series, very much. About malinvestment... I understand what you mean about it being totally unsustainable. China has been basically burning money to fuel growth, and getting away with it because the growth has been vigorous enough to keep everyone satisfied and not wanting their money back. That kind of process can collapse when people lose confidence in it. But there are other benefits to investment, even malinvestment. In your example the home owner loses $20 000 because of their expensive kitchen reno, but they now have an awesome new kitchen to cook in. The people who buy Chinese bonds have been fueling the growth of an unsustainable real estate industry, but at the same time they've also been giving millions of Chinese people hope for the future. Real estate is one of the only ways poor people can pool their savings and invest their way into the middle class. If the real estate sector can be reformed and made sustainable, that process is going to become more difficult. I wonder if the result will be increased social unrest.
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