The Chinese Bubble

[Palumboism]

90 Billion square feet of office space built, enough for an 8X10 foot cubicle for every man, woman, and child in China.  (at the 1:50 mark)

Half of China's economy is construction.

9.5 percent of banking assets in China are toxic compared to 2.5 percent of Americas assets in 2008, when the crash happened.

[ratherbebig]

just 33 minutes? common
i dont watch any video on getbig unless its 2 hour minimum

[Mr Anabolic]

EVERYTHING is a bubble today... everything except gold and silver.

All the central banks around the world keep printing trillions of dollars and throwing it at the stocks market and real estate to keep them propped up.  When these bubbles finally pop, it'll make 1929 look like a picnic.

[Marty Champions]

EVERYTHING is a bubble today... everything except gold and silver.

All the central banks around the world keep printing trillions of dollars and throwing it at the stocks market and real estate to keep them propped up.  When these bubbles finally pop, it'll make 1929 look like a picnic.

wrong
good productive companies and people can get rich today
housing is in massive demand and shortage
im companies books show a profit every quarter they are winning
 
1929 was another world .....only a massive war or armeggon scenario can stop the economy

[Irongrip400]

EVERYTHING is a bubble today... everything except gold and silver.

All the central banks around the world keep printing trillions of dollars and throwing it at the stocks market and real estate to keep them propped up.  When these bubbles finally pop, it'll make 1929 look like a picnic.

1929 was a farce. It wasn't until 1933 that shit hit the fan.

[BEEFYHEAVYWEIGHT]

.

[Palumboism]

China has $31.7 Trillion dollars in Debt

The biggest increase coming from state owned companies taking loans from state owned banks.  Most of these companies are drowning in debt.

Their government has SERIOUSLY screwed up their economy.  This is precisely why the government is limiting the amount of money that can leave China.  The citizens know there's a problem and would rather have their money in American, or Canadian real estate.

In 2007 one dollar of debt created one dollar of GDP growth.

In 2011 two dollars of debt were needed to create one dollar of GDP growth.

In 2016 they needed four and a half dollars to create one dollar of GDP growth.

The result is the government owned banks have to create more and more debt to keep the economy growing.  They won't be slowing down any time soon. 

[dj181]

we need to send a bunch of horny black dudes over there to race mix with them

[Simple Simon]

China has $31.7 Trillion dollars in Debt

The biggest increase coming from state owned companies taking loans from state owned banks.  Most of these companies are drowning in debt.

Their government has SERIOUSLY screwed up their economy.  This is precisely why the government is limiting the amount of money that can leave China.  The citizens know there's a problem and would rather have their money in American, or Canadian real estate.

In 2007 one dollar of debt created one dollar of GDP growth.

In 2011 two dollars of debt were needed to create one dollar of GDP growth.

In 2016 they needed four and a half dollars to create one dollar of GDP growth.

The result is the government owned banks have to create more and more debt to keep the economy growing.  They won't be slowing down any time soon. 

who do they owe the money to?

[MAXX]

Idk they seem to be out producing USA bigtime these days.

[Palumboism]

who do they owe the money to?

The money is borrowed from Chinese state owned banks, so it's not owed to foreign entities.  The loans are based on deposits, just like in a Western bank.

Most of the money was borrowed by state owned companies to add unnecessary capacity and to speculate on real estate and commodities.  Paying off the loan is no problem because they just take out a new loan to pay off the old loan like a ponzi scheme.

All those empty ghost town buildings were built using money borrowed by state owned companies from state owned banks.  These state owned banks with all those TOXIC loans on their balance sheets think the loans will be re paid, but they wont.  
 


“The Chinese banking system is different from anything to be found in the West. Although the Big Four banks are publicly listed and audited by international accountants, their main purpose is not to maximize shareholder returns. Rather, the banks are an arm of the state. Most bank lending in China is directed, at favorable rates, toward businesses controlled by the state."


http://factsanddetails.com/china/cat9/sub62/item353.html

[galain]

If they have that much property for everyone in China, why the fuck are they buying up the rest of the planet?

I'd love to move back to Australia one day but foreign investment (read: Chinese investment) has pushed prices to ridiculous levels.

[polychronopolous]

It's coming.

Keep the vast majority of investments in American companies.

The greatest economy ever known to Man.

[phreak]

If they have that much property for everyone in China, why the fuck are they buying up the rest of the planet?

I'd love to move back to Australia one day but foreign investment (read: Chinese investment) has pushed prices to ridiculous levels.

Because they know that real estate in China isn't worth anything. When the bubble bursts in China everyone who has invested in Chinese real estate will lose everything, but the Chinese who invested overseas will keep most of their value. Maybe a small correction as there may be some forced sales for Chinese investors who need to compensate for homeland losses. But most of the overseas value will be retained.

[Parker]

just 33 minutes? common
i dont watch any video on getbig unless its 2 hour minimum

"Common" definition =
com·mon
ˈkämən/
adjective
1.
occurring, found, or done often; prevalent.
"salt and pepper are the two most common seasonings"
synonyms:   usual, ordinary, familiar, regular, frequent, recurrent, everyday; More
2.
showing a lack of taste and refinement; vulgar.
synonyms:   uncouth, vulgar, coarse, rough, boorish, unladylike, ungentlemanly, ill-bred, uncivilized, unrefined, unsophisticated; More
noun
1.
a piece of open land for public use, especially in a village or town.
2.
(in the Christian Church) a form of service used for each of a group of occasions.

C'mon definition= c'mon

 
kəˈmän/
contraction
unpunctuated: cmon; unpunctuated: c'mon
come on.
"C'mon, it'll be fun!"

[Joschka]

I'd love to move back to Australia one day but foreign investment (read: Chinese investment) has pushed prices to ridiculous levels.

You're not wrong there, especially in the cities. The only real affordable options are out in regional areas.  Not many yellows or browns out there, but not many jobs either.  You just can't win.

[Simple Simon]

The money is borrowed from Chinese state owned banks, so it's not owed to foreign entities.  The loans are based on deposits, just like in a Western bank.

Most of the money was borrowed by state owned companies to add unnecessary capacity and to speculate on real estate and commodities.  Paying off the loan is no problem because they just take out a new loan to pay off the old loan like a ponzi scheme.

All those empty ghost town buildings were built using money borrowed by state owned companies from state owned banks.  These state owned banks with all those TOXIC loans on their balance sheets think the loans will be re paid, but they wont.  
 


“The Chinese banking system is different from anything to be found in the West. Although the Big Four banks are publicly listed and audited by international accountants, their main purpose is not to maximize shareholder returns. Rather, the banks are an arm of the state. Most bank lending in China is directed, at favorable rates, toward businesses controlled by the state."


http://factsanddetails.com/china/cat9/sub62/item353.html

so having the debt isnt a problem then, so why make an issue of it as though its to their detriment?

[El Diablo Blanco]

China also holds trillions in US cash.  Not electronic money but actual cash.  They could flood the market and essentially crash the US dollar.  Now they would be cutting off their squished nose to spite their face but they have the ability to cripple the US economy if it ever chose to.

[Tapeworm]

If they have that much property for everyone in China, why the fuck are they buying up the rest of the planet?

I'd love to move back to Australia one day but foreign investment (read: Chinese investment) has pushed prices to ridiculous levels.

Yep.  Perth is in a slump and prices are still retarded.

I'm making an offer this week on 5 acres (less than what I wanted but possibly the best view in town).  20% fucking deposit.    It's been a long, long time coming.  I've yacked on here about buying a house for the better part of 10 years.  Fuck I hope I don't miss it.

As far as I can tell people either buy when their parents die or get 2 loans - one from a bank and one from their oldies.  Then they get to be housepoor forever and indentured to their shit jobs.  Which are evaporating, btw.

Old people aren't nice.  They'll smile while talking only because they relish telling you how they paid $18,000 in 1965.  "But that was a lot of money back then!"  Really?  $18,000 was equivalent to an $800,000 loan and the interest repayments in 2017?    (Not what I'm paying.  No.)  Btw your house is piece of shit, you old confused boomer coot.  Not sure why you want me fixing it up since the next owner is going to bulldoze the place where all your family memories got made but here's the invoice.  Pay it before you keel over.  Pay it twice like you repeat your stupid irrelevant stories that you forgot you already told me yesterday.  I got a property to buy and I'm not nice either.  Who can afford to be.

[El Diablo Blanco]

Chinese are buying up property all along the coastal cities in America and the crazy thing is they're coming here paying all cash.  Real Estate agents will push you aside if they see a chinese person walk into the open house.  they know they'll pay.

Funny how a chinese person will drive 10 extra miles to save .20 cents per pound on meat but will overpay in cash for a home or bet $100 a hand on pai gow.  Odd fucking culture.

[Tapeworm]

The odd culture is the one willing to sell itself by parceled lots to non-citizen buyers.  Whatever.  Suits me.

[El Diablo Blanco]

The odd culture is the one willing to sell itself by parceled lots to non-citizen buyers.  Whatever.  Suits me.

There's one thing government loves more than its country and that is money. They love $$$$$

[dj181]

You're not wrong there, especially in the cities. The only real affordable options are out in regional areas.  Not many yellows or browns out there, but not many jobs either.  You just can't win.

how do you feel about those browns and yellows banging your white women?

[Simple Simon]

China also holds trillions in US cash.  Not electronic money but actual cash.  They could flood the market and essentially crash the US dollar.  Now they would be cutting off their squished nose to spite their face but they have the ability to cripple the US economy if it ever chose to.

and to simply counter the Chinese the USA could simply change the appearance of their currency and any old currency will be exchanged as long as you can verify where you got it.

which would make all the Chinese stored trillions instantly worthless.

[El Diablo Blanco]

and to simply counter the Chinese the USA could simply change the appearance of their currency and any old currency will be exchanged as long as you can verify where you got it.

which would make all the Chinese stored trillions instantly worthless.

This would bring the entire US economy to a halt.  Imagine not having access to any of your money until you prove otherwise.