patrick.net

While The Evergreen State College will likely need a bailout to stay afloat, I believe you meant Evergrande.
Fortunes Tumble From Seattle to Shenzhen in $135 Billion Wipeout
(Bloomberg) -- A global rout in stock markets sparked by concerns over China Evergrande Group hit the world’s biggest fortunes Monday, with the richest 500 people losing a combined $135 billion. Tesla Inc.’s Elon Musk led the declines as his world-leading net worth fell $7.2 billion to $198 billion, according to the Bloomberg Billionaires Index. No. 2 Jeff Bezos, the founder of Seattle-based Amazon.com Inc., lost $5.6 billion, paring his fortune to $194.2 billion. A cash crunch at Evergrande, China’s most indebted developer, and a regulatory crackdown on the nation’s real estate market stoked fears about possible financial contagion. Markets also reacted to U.S. Treasury Secretary Janet Yellen’s warning of economic catastrophe if lawmakers fail to raise the debt ceiling.

EBGuy says

While The Evergreen State College will likely need a bailout to stay afloat, I believe you meant Evergrande.

Fixed!

HunterTits says

What the fuck does one (Chinese real estate) have to do with the other (debt ceiling)? Nothing.

China owns a good slice of US Treasuries. When they aren't financing propaganda in the USA, bribing WHO/UN/NGOs, or buying out US Companies and bringing the patents/know how to China, they buy Treasuries.

Evergrande has hundreds of millions is US Dollar Denominated Debt payments coming up end of this month and next.

It's total indebtiness about half the size of Lehman Brothers, $300B. Stock is down 80% and Employees were basically voluntold to give Forced Loans to the Enterprise a few months ago. 200,000 Employees.

This is all because they wouldn't mandate across the board vaccines.

Is this going to make my crap shack go down in value?

Ceffer says

Is this going to make my crap shack go down in value?

Hahahahaha

"If we don't bail out Bubble Builder from Beijing, it'll destroy the Economy! Fucking Trump MAGAts!"

Many Chinese have a gambling mentality.
Businesses there may take huge risks.
I’m amazed how much debt Evergrande has.
Maybe the Chinese government is going to own some or all of Evergrande.

Who’s Buying Evergrande’s Bonds?
BlackRock’s portfolio saw a net addition of 31.3 million shares in Evergrande issues between January and August 2021. That said, the overall impact on the portfolio is a smaller position due to a fall in the bond’s market value. The fund holds 1% of its portfolio assets in China Evergrande Group, a level higher than the 0.5% weighting in the JP Morgan Asian Credit Index.
Between January and July, HSBC added 40% more in Evergrande bond shares, but total portfolio exposure is down to 1.22%. UBS’ latest available data was as of the end of May. Its Asian high yield bond fund trimmed 0.09 percentage point of exposure to Evergrande, but the number of total shares rose 25% year-to-May.
However, the turnaround story and cheapened valuations aren’t for everyone. Morningstar Direct data shows that Fidelity, PIMCO and Allianz are net-sellers of Evergrande bonds between January and July, owning 3%-47% less bond shares.

MisdemeanorRebellionNoCoupForYou says

China owns a good slice of US Treasuries.

I don't think they do now. I think it's less than 1 trillion dollars at this point.

It doesn't matter, the Fed will just print up a trillion bucks if they need to.

EBGuy says

Who’s Buying Evergrande’s Bonds?
BlackRock’s portfolio saw a net addition of 31.3 million shares in Evergrande issues between January and August 2021. That said, the overall impact on the portfolio is a smaller position due to a fall in the bond’s market value. The fund holds 1% of its portfolio assets in China Evergrande Group, a level higher than the 0.5% weighting in the JP Morgan Asian Credit Index.
Between January and July, HSBC added 40% more in Evergrande bond shares, but total portfolio exposure is down to 1.22%. UBS’ latest available data was as of the end of May. Its Asian high yield bond fund trimmed 0.09 percentage point of exposure to Evergrande, but the number of total shares rose 25% year-to-May.
However, the turnaround story and cheapened valuations aren’t for everyone. Morningstar Direct data shows that Fidelity, PIMCO and...

Peanuts.

Blackrock and Evergrande. I bet you the US exposure in the Chinese Real Estate Market is much larger than advertised. Special Investment Vehicles, ownership by proxy in other entities: 2008 Financial Crisis saw a lot bigger stake, creatively concealed, in the Real Estate Markets than anybody thought in advance.

Blackrock is severely overexposed to the US Real Estate, to the point they've brought up unfinished subdivisions across the country.

I don't underestimate Wall Street's Greedy Foolhardiness.

MisdemeanorRebellionNoCoupForYou says

Blackrock is severely overexposed to the US Real Estate, to the point they've brought up unfinished subdivisions across the country.

BlackRock or BlackStone? The latter is known for its real estate investments.

FuckCCP89 says

BlackRock or BlackStone? The latter is known for its real estate investments.

Blackrock:

https://www.foxnews.com/media/blackrock-investment-firms-killing-dream-home-ownership

https://www.blackrock.com/institutions/en-us/strategies/alternatives/real-assets/real-estate

As for Evergrande, why would US Stocks take a hit? Chinese Cement, Chinese Steel, not made in the USA. It's not like US Companies are losing out.

The only way US Companies would be shaken is if there is a lot more exposure than advertised by US Firms investing in Chinese Builders and Real Estate.

I would imagine the Chinese, at the very least, would pull big sums out of the USA.

Of course, everything will just be bailed out and more money printed.

RINOs won't even get some modest concessions in return. Token at best.

https://www.ntd.com/evergrande-chinas-ticking-bomb-explained-by-economist-milton-ezrati_678532.html?utm_source=patrick.net&utm_medium=patrick.net&utm_campaign=patrick.net

Evergrande—the second-largest real estate developer in China—is causing so much trouble for the Chinese regime, and its presence in the economy could also affect U.S. investors.

Will it cause a global ripple through the interconnected financial system? The Chinese communist regime must decide if they want to bear the heavy weight of $300 billion in debt, or leave Evergrande to fail. But what about social stability from the aftermath of Evergrande going down? The real estate giant in China may cause a domino effect, bringing the entire housing market in China down with them. Will Beijing let that happen?

I speak with economist and author Milton Ezrati to find out from industry experience how to understand Evergrande and how control and stability play a central role in the decision-making process.

Evergrande Gave Workers a Choice: Lend Us Cash or Lose Your Bonus
The Chinese property giant owes $300 billion and is on the hook for as many as 1.6 million apartments. It may owe tens of thousands of its employees money, too.
Is this company too big to fail? Xi will have his hands full with social unrest if Evergrande goes belly up. The alternative is just as bad.

https://www.coffeeandcovid.com/p/regression-wednesday-january-31-2024

The company’s debt exceeds its assets by over $300 billion in U.S. dollars. At those figures it looks like the second-biggest bankruptcy in history (after Lehman Brothers imploded in 2008 leaving over $600B in unpaid debt). Evergrande still could be the biggest bankruptcy in world history, depending how things shake out.

It was a poorly-kept secret that Evergrande was essentially a subsidiary of the Chinese Communist Party, which has been enthusiastically dabbling in quasi-fascist capitalism the last few decades. The company’s bankruptcy is spreading not just amongst its investors and banks but to odd political contacts, like Harvard, which lost a $115M grant that Evergrande had pledged for Harvard’s help covering up Covid’s lab origins.

One suspects its those political losses troubling corporate media the most.

So, building all these new empty cities in the middle of nowhere wasn't such a brilliand idea after all? I'm shocked! Shocked!!

The way funds work it won't hurt BlackRock if Evergrande eats shit and disappears.

https://www.businessinsider.com/china-property-crisis-csrc-accuses-evergrande-founder-falsify-revenue-fraud-2024-3

Beijing says Evergrande and its tycoon founder committed a $78 billion fraud. That would rank it as one of the biggest financial frauds ever.

The developer, at one time China's largest, is in liquidation after several years in a debt crisis.

Now, it's being accused of fraud, too.

China just needs to murder some useful idiots to keep the rest in line.

RWSGFY says

So, building all these new empty cities in the middle of nowhere wasn't such a brilliand idea after all? I'm shocked! Shocked!!

someone won and someone lost...its a zero sum game isn't it?

Just the old real estate game. "Every dollar borrowed is a dollar earned".

Soo, is it habbening?