Comments by "HKim0072" (@HKim0072) on "Inside China’s Property Crisis" video.

  1. Totally underselling the pain that is spread out due to the “debt” structure of developers. Generally speaking, 1/3 of debt is bonds, 1/3 is pre-payments and 1/3 is debt to suppliers. Sure banks are “protected”, but everyone else is totally f’d. Also, the magnitude of debt. Just Evergrande and Country Garden have debt of close to 3% of GDP. When Lehman folded, their debt was about 0.5% of GDP.
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  2. Haha, 70% of household wealth is housing real estate. Ain’t just about investors.
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  3.  @freemanol  Politely, you are misinterpreting the statistic. It's not talking about % of ownership. It's saying that household wealth at the total is 70% housing. The other 30% is stocks, bonds or cash in banks.
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  4. I'm an idiot and I could have solved the housing crisis a decade ago. 1- true escrow accounts. None of this double dipping using prepayments as extra leverage 2- RE annual tax. The perverse incentives for local governments to keep selling land at higher prices would be mitigated somewhat. Housing costs soared because...local government were charging higher prices!
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  5.  @robbrand922  lol, this dude never heard of mark-to-market. Lehman had $600B in assets on the books. It wasn't an accounting scandal. YOU'VE NEVER TAKEN AN ACCOUNTING CLASS HAVE YOU?
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  6. Do you realize that Bloomberg is a computer terminal that provides information? The TV stuff is just a sideshow.
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  7.  @wbwarren57  I would concur, but realistically the journalists aren't top tier analysts. Very few of them are digging into the hard data since they don't have skin in the game. Then, they have people on the shows that are pushing their books.
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  8. Yeap, CCP regulations are meant to protect state owned banks and not the consumer.
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  9. The trick with the greater fool theory is...don't be the fool.
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