Evergrande going bankrupt will be somewhat larger than what happened back in 2008 with the Lehman Brothers.
I'm not a market specialist, but knowing how heavily in bed our Fed Gov't has been with them, and all the assets they have here in the US...we will be pretty heavily effected by it as well.
I do not think Xi will bail out Evergrande, but probably buy it after their bankruptcy. This wouldn't stop the dominos from falling either.
So the unique thing about evergrande is that it is just one sector of chinas eco, whereas lehman was a hedgefund dipped in every sector. Evergrande sells corporate junk bonds that multiple huge funds / banks own. One sector takes a dump ( one company causes all others to dip by liqidation of assets) then it triggers others to go under.
Evergrande going bankrupt will be somewhat larger than what happened back in 2008 with the Lehman Brothers.
I'm not a market specialist, but knowing how heavily in bed our Fed Gov't has been with them, and all the assets they have here in the US...we will be pretty heavily effected by it as well.
I do not think Xi will bail out Evergrande, but probably buy it after their bankruptcy. This wouldn't stop the dominos from falling either.
This is very accurate.
https://www.reddit.com/r/Superstonk/comments/pp46tz/evergrande_is_done_they_have_suspended_bond/?utm_medium=android_app&utm_source=share
So the unique thing about evergrande is that it is just one sector of chinas eco, whereas lehman was a hedgefund dipped in every sector. Evergrande sells corporate junk bonds that multiple huge funds / banks own. One sector takes a dump ( one company causes all others to dip by liqidation of assets) then it triggers others to go under.
Then why would he buy it? He does not know it won't help?