evergrande has been in the news a lot recently but even so many people have been wondering when the debt ridden behemoth would actually fall you've no doubt seen people saying that it's going to default for months now and yet up until yesterday it had somehow managed to survive now though the questions have changed it's no longer if it's not even when now it's just how big will this crash be and the truth is it is going to be absolutely massive but that doesn't mean it's going to happen quickly there will not be a snap there won't be a singular moment where everything catches on fire and nor will there be a day when the chinese stock market drops by NUMBER_TOKEN percent out of nowhere the decline that we are currently witnessing in the chinese economy started almost a year ago and it's going to last for years into the future as well there will be many more days like today when more is made out of this collapse than usual but in reality the fall of china's real estate sector and the rest of the economy as well will be a slow burn that lasts far longer than you are expecting nonetheless this is an important day evergrande has finally defaulted and today i'm going to briefly explain what has taken us to this point and what the recent developments have been and what's going to come next but first leave a like and a comment to bless the youtube algorithm if you want more content like this then check out our patreon and join our community of investors you get access to our discord loads of exclusive content like private live streams extra videos and buy and sell alerts for my own personal portfolio so for anyone who isn't NUMBER_TOKEN clued up on the situation that evergrand and china as a whole has found itself in don't worry i'm going to explain briefly what's going on now now this is going to be a little bit short and i'm afraid i'm going to have to skip out a lot of context so if you want more background i'm going to link to some videos in the description that give a lot more information now the gist of the problem here is that china is right in the middle of the world's largest property bubble and that bubble has already started to pop the property market in china has been inflating for decades at a rate that you wouldn't believe it is the largest asset class in the world currently sitting at around NUMBER_TOKEN trillion dollars or more than the u.s housing market the european housing market and the japanese housing market combined now this growth has been fueled by speculative investing by chinese citizens and the government and property developers working in tandem to build as many apartments as possible with nearly no regard as to whether or not there is any real demand from people wanting to live in these apartments as a result there are literal ghost cities in china where millions of apartments lie empty without water electricity elevators or even staircases purely because no one lives there that of course doesn't stop people from buying these apartments however as the speculative nature of the housing market in china means that even these concrete shells that provide no real utility still soar in price property developers have been making huge amounts of money off the construction of apartments and as there is so much money to be made developers have been expanding as quickly as possible and building as many apartments as possible unlike in usual businesses where a company has to be efficient pay attention to the costs of manufacturing
START_SELFPROMO_TOKEN but first leave a like and a comment to bless the youtube algorithm if you want more content like this then check out our patreon and join our community of investors you get access to our discord loads of exclusive content like private live streams extra videos and buy and sell alerts for my own personal portfolio END_SELFPROMO_TOKEN