He didn't even touch on the follow-on effects, which will be even MORE massive.
An incredible proportion of the Chinese economy and employment has been to take this once-unstoppable flows of capital and build, build, build WAY past the point when the real demand was exhausted, but the financial demand for investment properties remained fevered due to lack of alternatives. This resulted in beyond-insane overbuild - this video mentioned 90 million unoccupied residential units!
So no only will the highly-leveraged investments of most (unconnected, and thus unable to get their assets out of China) Chinese be largely wiped out, but the unemployment is going to be MASSIVE. The CCP has ZERO chance of surviving this.
I would have initially presumed that Calpers and Calstrs would have eschewed chasing returns in the sketchy, unaudited Chinese market, but it turns out my presumption would have been wrong.
Hell, Calpers even turned over management of their whole damn fund to a Chinese national. 😲
They can get wrecked.
For a large fund such as CalPERS, which has more than $400 billion under its management, the choice to invest in Chinese companies is directly related to its managers, Xie said. Meng Yu, the fund’s former chief investment officer, is of Chinese descent and once said his “roots are in China.” Prior to joining CalPERS in January 2019, Meng served as deputy chief investment officer at China’s State Administration of Foreign Exchange, which manages more than $3 trillion in foreign exchange reserves.
He didn't even touch on the follow-on effects, which will be even MORE massive.
An incredible proportion of the Chinese economy and employment has been to take this once-unstoppable flows of capital and build, build, build WAY past the point when the real demand was exhausted, but the financial demand for investment properties remained fevered due to lack of alternatives. This resulted in beyond-insane overbuild - this video mentioned 90 million unoccupied residential units!
So no only will the highly-leveraged investments of most (unconnected, and thus unable to get their assets out of China) Chinese be largely wiped out, but the unemployment is going to be MASSIVE. The CCP has ZERO chance of surviving this.
Sort of reminds me of the student loans in the US. Extension of credit to ‘overbuild’ students with useless degrees.
Not to mention all the public retirement money (like California Teacher's Pensions) that will go down with it.
I would have initially presumed that Calpers and Calstrs would have eschewed chasing returns in the sketchy, unaudited Chinese market, but it turns out my presumption would have been wrong.
Hell, Calpers even turned over management of their whole damn fund to a Chinese national. 😲
They can get wrecked.
https://m.theepochtimes.com/california-pension-fund-increased-investment-in-chinese-a-shares-amid-sec-investigation_4026233.html
http://www.capoliticalreview.com/capoliticalnewsandviews/calstrs-massive-investments-in-china-but-disinvests-from-american-companies/
Holy balls. This is going to be one hell of a movie.
Hurray! The teachers teaching all that communist rubbish totally deserve this
The is America's end game, bankrupt the CCP, obstacles like, MSM, corporate wokeness, maybe even Rinos and DS get deflated!
CCP did it to themselves.
Gets me every time.
Agreed. The American economy can survive without China, USMCA helped along with that. The opposite cannot be said of the Chinese economy.
Will this impact the stock market?
...follow gold