Afraid to invest in the stock market, the Chinese people have invested their life savings in the housing market. The housing market holds aprox 62% of the life savings of the Chinese people. Property development has been a huge factor in China’s economic growth. It accounts for 28% of GDP. Its all about to change.
New property sales in China dropped by 36% in September on average, as much as 45% in Shanghai.
Evergrande has until Oct 23rd to make its bond payments or they will default. These payments are to the bond holders who have invested in buying Evergrande bonds. The USA is holding $300 billion of these bonds which could spell trouble here.
If they default, Evergrande will have to liquidate properties at rock bottom prices.(90 million vacant apartments) This will destroy housing prices and crush the housing market along with the Chinese peoples life savings.
It seems Evergrande had to much money invested in assets that were not selling. Their net income fell, investors got scared and stopped investing and short sellers swooped in when they saw the fall of Evergrande coming a few months ago.
Without any liquidity from Evergrande, other heavily leveraged developers will also soon fall. We are talking about a $62 trillion housing sector that the Chinese people have a large chunk of their life savings invested in.
Remember the video where we saw China imploding high rise apartment building that were half built. No money to finish them and they stand to destroy the housing values if they go on the market at dirt cheap prices.
Evergrande has literally built a house of cards using the Chinese peoples life savings and money from bond purchasers here in the USA. I keep reading the bond market here may implode. If you have money in bonds, maybe talk to your broker
This could start an uprising in China, an overthrow of the current political class. I guess Xi could bail out Evergrande if he wanted to but throwing good money after bad is not the best idea. Bursting the bubble now is better than kicking the can down the road and the damage would be greater.
I don't know what the political implications for Xi or the CCP would be if the people started to revolt after learning they invested in a giant Ponzi scheme. What Xi has going for him is a few years ago he instituted new regulations that would prevent a future Evergrande scenario but at the same time these new regulations started the collapse going on now. It almost seems that Xi did this intentionally and my question is "Did he do it at President Trump's request"? Lots of different scenarios intersecting at the same time. This could get interesting.
Here is a good video explaining what is about to happen.
I feel like property taxes in the US make it feels like you don't really own the land.
You own it, you can accrue wealth if it appreciates and then sell it to make a profit. You just have to pay a fee while its in your possession. If you stop paying the taxes they will seize it from you, sell it at auction, take their cut and give you the balance.
See the "if you don't pay the fee they can seize it from you" doesn't feel like true ownership. When you pay a fee to keep "owning" something it feels more like renting than owning.
It feels like renting because it is renting - this is a big part of the reason why you can't live "off the grid" as some wish to do.
The truth isn't always very pleasant, but it's still the truth.
Gotta pay for that fine military equipment being used to currently guard your property.
That $13 a pint ice cream is not going to freeze itself.
she needs to be IN a fridge on a cold slab....
I get that, but it should feel like true ownership. Assets cost money. Citizenship has a price.
Houses have to be maintained.
Piles of cash have to be defended.
Health deteriorates.
You can’t have your cake and eat it too.
The road to your land has to be repaved.
A car that doesn’t take gas (and doesn’t need a charge) is too good to be true.
If you’re not the one paying taxes, then you’re not the one owns the land.
Renters don’t pay taxes.
Historically renters couldn’t vote.
You had to own land.
Because only the people who own the land pay the taxes.
Only the people who pay the taxes are citizens.
Unfortunately that’s changed. Now we have dumb, unemployed, homeless felons voting on our laws. Despite the fact that its not their money they’re spending.
I mostly agree with what you've stated but this:
It is true that renters don't write the check that pays the taxes but the money that person that rents the property to them comes from the renters - ultimately, the renters DO pay the taxes because they're income is the source from which the taxes are paid. Think of it this way: Corporations don't pay taxes, they act as the tax collector by including the cost of the tax incurred into the product they sell - the product in this case happens to be the property being rented.
To elaborate, it’s not just the government that can take your land when you owe them.
If you owe anyone money, then they can sue you. If you don’t pay the judgment, then they can have the sheriff seize your bank accounts, cars, land, etc. and sell them, keep the money you owed them (plus costs) and give you wants left. It’s not unique to owing the government.
Of course, many states provide protection for your homestead, and one car, or something like that, but if you have a business or second property…
imagine for a minute that we lived in United States the way it was imagined with governments that are truly answerable to the people and a Fed whose real concern is to keep America safe.
If you owned property in that wonderland, would it not be fair to contribute to the mutual defense and maintenance of it?
Sure, if it was a choice and we got to decide where it went. But the meaning of choice is that if we stopped paying that money we would not have the land seized.
See, the money is taken and spent where they please without our consent. If we don't pay their "fee" the land is taken.
The real question is do you believe property taxes should be mandatory or not? And if you agree with mandatory then you agree that the government has the right to take away what you "own" because you decided not to contribute.
See how easy it becomes for so many sheep to accept mandatory vaccines? We let the government mandate all sorts of things for "our own good".
If the government can mandate you pay them to own land, then why can't they mandate what they do with your body?
Paying a non-negotiable charge on pain of losing the asset is not ownership. Owning something means you own it and what you do with it is not interfered with unreasonably. If you accept property taxes in principles you will get "property" taxes in practice, see recurring gun tax they want to do. They're one and the same thing.
In the land of No Bullshit, though, the entity that force you to surrender thousands of dollars every year under threat of losing "your" property, and then seize it by force and physically evict you into the street if you don't pay, is the de facto owner.
Source: own my home free and clear; do not own my home at all
Even if you do pay they and have seized land from owners with the "eminent domain" stuff though.
Fee? It's a rental fee. Youbare allowed by the queen to a warranty of title not rhe actual title.
rent to own, but you never are able to stop paying the rent portion (property tax).