HOW DOES THIS END? On two occasions in modern times, central banks have found themselves obligated to pour huge amounts of newly-created money into the system. The first instance was the global fin…
I was sure it was going to be evergrande and Chinese property?
It might have collapsed another economy, but I think China is relatively well-equipped for dealing with financial crises given the higher degree of state-planning and the lack of needing to be corporate capital havens. I think they were extremely wise to prioritize deleveraging individual investors like people buying homes for themselves (and wise to maintain a state that can facilitate such decision-making). In the end they got a surplus of housing and blew up some rent-seekers - pretty impressive imo!
It might have collapsed another economy, but I think China is relatively well-equipped for dealing with financial crises given the higher degree of state-planning and the lack of needing to be corporate capital havens. I think they were extremely wise to prioritize deleveraging individual investors like people buying homes for themselves (and wise to maintain a state that can facilitate such decision-making). In the end they got a surplus of housing and blew up some rent-seekers - pretty impressive imo!