Comments by "Samson Soturian" (@samsonsoturian6013) on "China's Real Estate Bubble Explained" video.

  1. I'd say the ricochet will be mostly felt by investors who bought shares and bonds. Like how what just happened with Evergande.
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  2. You didn't watch the video
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  3. Lose the whataboutism. There's a order of magnitude more leverage and less real growth to differentiate the two.
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  4. Some collapse without ever being used
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  5.  @dangerouslytalented  I saw videos where thick rebarb and concrete was broken with bare hands. It's all being actively diluted and most new projects demolish old one. There's some convoluted reasons for this.
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  6.  @dangerouslytalented  not to half this extent. One report from an anonymous real estate manager said fierce competition meant profit margins rarely exceeded 10%, but some spend as much as 30% on bribes. Blueprints are often straight up ignored just to scrape out profit. One racket is for a local official to give the contract to a shell company owned by a relative. This company will subcontract all the work to someone else, and split the difference with the official.
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  7.  @dangerouslytalented  if you're receiving any. Most of the time builders simply scalp on building materials (like adding bottles to concrete). Defaults on payroll are frequent.
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  8.  @Nktrading1  yiu don't have any idea how this all works, do you?
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  9. Worse. Chinese markets don't follow first world logic.
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  10. Having been an impoverished American I'd say that's a gross exaggeration. But stop and think that in most countries you would simply not be allowed to get a bank loan that large even with collateral. Also this effects not just the bottom 20% of income, but Chinese people of all walks of life. Even the real estate companies are super leveraged.
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