36 Replies to “Post-Evergrande: China’s Waterfall of Pain”

  1. Schadenfreude Time:
    Nice corrupt country you got there, Chinese Communists. Shame if anything happened to it, you scum.

    1. They’ll get the last laugh when they move into their bought and paid for McMansions that are now sitting empty in Vancouver and live off the money they’ve already laundered through Canadian casinos and become our neighbours.

  2. Thank you for this post – I have copied and sent this Twitter thread to some friends and family.
    I have some questions: Is China going to start calling in all of the loans made over the years to countries around the world to help bail out these groups? How much money has Canada “borrowed” from China? How is this going to affect “old Big Momma”?
    For a supposedly Communist country, these banks and property companies were certainly acting like bad Capitalists. The motivating factor seems to be GREED!

  3. You know you are at the end of the real estate boom when …

    The head of Mattamy homes wants the government to pay for the construction of affordable housing.

    1. You misunderstand, the head of Mattamy homes always wanted the government to pay for affordable housing, that way they can jack up their profit, and don’t have to deal with customers.

      1. I can remember a day when Mattamy homes was too busy building houses to worry about lobbying the government.

  4. I am getting paranoid. Maybe I should bail out of the stock market. Have shares in CND banks and BCE. Good dividends however.

    1. It’s impossible to predict but there is definitely the possibility that this Chinese economic disaster could generate a flow of money into the stock markets.

    2. Screw the stock market. Food, water, fuel, firearms, ammunition and various tools and hardware to repair your survival systems. Don’t forget a small local network of likeminded families that are ready to support and rely on each other.

      1. Doug, no one has the ability to outlast the system. If you have weapons and lots of ammo, and food you will still only survive for, maybe a year. We have to stop the insanity as a population that wants freedom and are unwilling to bend our knee.

    3. Did that about 20 years ago, I went all cash. I don’t think there is an upside as the fucking government is inflating my all cash reserves at at rate comparable to the Weimar Republic. We can’t win unless we take them down. Canadians won’t do that, that sad but fucking true.

  5. Communists have a long history of defaulting on loans. Look for the CCP to default on their foreign debt while protecting the internal investors.

    2. I just read on msn.ca that has just happened – EverGrande has made a deal with its domestic creditors and is NOT going to pay the foreign(international) creditors.

  6. Could this be the real underlying reason for the SCAMdemic? The ruling elite wants the sheep under total control for the time the world economy comes crashing down?

  7. Remember doing my first and last Chinese deal years ago and it was never clear to me how they had the money to close the deal but, miraculously, the week of closing all of a sudden $500 million shows up in a bank account and it appeared to have been from a loan they had taken out in another part of the corporate chain even though they were already borrowing against the assets they were buying.
    As far as I can tell, these Chinese businesses are all owned by the government and it’s just some ever expanding shell game where money flies around from place to place, company to company, to keep the leaking ship afloat.
    My only advice to doing business with them is get a massive deposit up front and don’t expect the rest….

    1. Reminds me of this from “Chicks on the Right” blog years ago:

      It is a slow day in the small Saskatchewan town of Pumphandle and streets are deserted. Times are tough, everybody is in debt, and everybody is living on credit.
      A tourist visiting the area drives through town, stops at the motel, and lays a $100 bill on the desk saying he wants to inspect the rooms upstairs to pick one for the night.
      As soon as he walks upstairs, the motel owner grabs the bill and runs next door to pay his debt to the butcher.
      The butcher takes the $100 and runs down the street to retire his debt to the pig farmer.
      The pig farmer takes the $100 and heads off to pay his bill to his supplier, the Co-op.
      The guy at the Co-op takes the $100 and runs to pay his debt to the local prostitute, who has also been facing hard times and has had to offer her “services” on credit.
      The hooker rushes to the hotel and pays off her room bill with the hotel owner.
      The hotel proprietor then places the $100 back on the counter so that the traveler will not suspect anything.
      At that moment the traveler comes down the stairs, states that the rooms are not satisfactory, picks up the $100 bill and leaves.
      No one produced anything. No one earned anything… However, the whole town is now out of debt and now looks to the future with a lot more optimism.

      2. I made up and told a similar story to my local staff in the former Soviet Union back in the 1990s…

        “I fly into your town and give a taxi driver $20 cash to drive me into town, he gives the $20 to a prostitute for services, she goes to the market and buys cosmetics, the cosmetics seller buys groceries, and so on, by sundown 13 people have obtained $20 in value, if the government had a 5% tax on every transaction the government would have had $13 in revenue too.”

      5. It’s cute but it doesn’t work cause goods were actually produced (e.g. food for the hotel owner) or supplied (feed for the pig, pig to the butcher) and the last transaction was the hotel owner being paid for services rendered but he had to pay back some money he “borrowed” leaving him to keep what he earns when he sells the food he bought on credit from the butcher.

  9. The cause is not “money printer go BRRRRRRR”. It is the extension of credit to entities that have neither the means nor the intent to repay it.

  10. CP24 reports this morning that Evergrande says it will pay interest due to Chinese bondholders but no plans to pay bond abroad.

    Over Evergrande? No, I don’t think Xi will ever get over Evergrande.

  11. So centrally planned economies eventually destroy themselves, now heading for a second China proof?
    Quick, alert Justin. And two-thirds of voters. My daughter in 2015 told me she had to find out for herself about Grit collectivism.
    She did learn, the hard way. Too bad so sad for the majority who didn’t, as Justin gets license for his regal crony imperium.
    Getting tired of saying don’t say I didn’t warn you. Justin failed in his majority, but he succeeded in splitting the centre right.

    1. shammy, O’Stool split the vote on the right, not McTurd. Actually the CPC brain trust is probably more to blame than the O’Stool his self, they started the shit show when they allowed the milk cartel to rig the vote for leadership, and got scheep in as leader. O’Stooled failed to co-ordinate policy before the libs and their news division could pull there scam on the O’Stool

  12. So it’s back to mud huts for the lot of you!

    Perhaps now … the ChiComs will Force Apple to pay a “living wage” to their Chinese slave Labor? Speaking of ChiCom “Free Markets” by a certain UnHuman among us …

  15. well heads up folks, the CCP probably has a division similar to NSA, and will have lots of dirt on the right people in USA and Canada,forcing them to use YOUR money to bail them out. Joke Biden is already bought and paid for, and so is McTurd. Now start reaching into your pockets for your share of bail out

    1. True, that means you’re fucked garbage boy. Instead of the cute mail order bride you have prepaid for during your visit to sunny Wuhan you get an old wrinkled hag now and a bill.
      Confucius says: No poontang for you!

  16. It would not surprise me in the least if our political leaders will try to bail out this ‘company’.

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