Why China's Evergrande Collapse Matters; Chinese Economy; China-Russia: Pipeline - China Update

[TexasTowelie]

00:00 Introduction
00:12 Evergrande Liquidation
06:40 Another Missile Official Taken Down
07:48 Russia-China: Mega-pipeline Delay

[Warpy]

1. The ripple effect will be enormous

People who pay attention have known Evergrande was going to go belly up for almost 5 years: they were overextended, were financing current projects with the sale of units that existed only on paper (if there), and had largely kept all profits inside a family of insider stockholders rather than pouring them back into the company.

The ripple effect will likely bankrupt a lot of those offshore suppliers of things like concrete mix, glass, and even steel. There is no way those suppliers will ever get paid.

Expect China to swing back to the Russian "Communist" model, at least short term. Evergrande has shown them that capitalism doesn't work.

What they need to realize is that unregulated capitalism doesn't work.