Evergrande Collapse fall-out

[TomKat]

As most know, china's Evergrande fund went bankrupt recently. So far, other than a crypto price crash, there hasn't been much fall-out. But now there's another default:

https://www.reuters.com/markets/rates-bonds/chinese-developer-sunshine-100-defaults-170-mln-bond-2021-12-06/

[ExomatrixTV]

China's Commercial Real Estate Crash And Housing Bubble Burst On The Horizon As Evergrande Collapses

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Supply Chain Crisis Is Starting To Get Really Crazy: Be Ready For The Coming Apocalyptic End Game:

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[Dubsy]

It's not officially bankrupt ..... yet

Most certainly on life support

NO EVERGRANDE BONDHOLDERS HAD RECEIVED OVERDUE COUPON PAYMENTS ON THE NOVEMBER 2022, NOVEMBER 2023 BONDS AS OF 1400 GMT ON TUESDAY - source- Bloomberg

This is serious, but it's not going to be the Black Swan event that rocks the markets. 'Black Swans are by definition 'surprises that appear out of nowhere' that nobody see's coming. The coming Evergrande saga has been well documented over the past year. The markets outside China are giving it a big :lalala: and it remains to be seen if their hubris ends up biting them on the ass.

My take on this ( for what it's worth ) is that Evergrande is a gush of wind blowing the domino that will eventually topple, yet needs help from stronger winds that were not forecast.

A more interesting event for me is the ongoing contagion of property bonds in China. - The market will swallow the Evergrande defaults - It will be hard to ignore if the whole sector breaks down.

Chinese Developer Kaisa Suspends Share Trading As Potential Default Looms - Source Financial Times (yesterday).. I'm unable to supply the actual links because these articles are gated and require a subscription

It's difficult when information merges in different threads. -- I've been pointing out the possible bigger contagion here some time ago .....

https://projectavalon.net/forum4/showthread.php?111363-Turmoil-in-China&p=1461201&viewfull=1#post1461201

There are bigger gusts of wind than Evergrande

[norman]

The Chinese centric collapse will take several months to play out. The current mess in crypto looks to me like a move to block one of the exits ahead of the big one.

All of that is to crash down on top of the vax/lockdown/police state etc etc.

Collapse is certain. What 'builds back better' is the nail biter. Have the good guys done enough to snatch it all away from the crooks ?

[norman]

Clif High has his own very special way of explaining all this. I think he's over doing the strength of his beloved cryptos tho'.

A good listen, on the Evergrande topic and much much more, downstream.

clif_high - rumors of woo (https://www.bitchute.com/video/kDlEKJ4k17Yw/)

[Dubsy]

Here we go ......

Fitch downgrades Chinese property firms Evergrande and Kaisa to 'restricted default'
Ratings agency Fitch says China Evergrande Group and Kaisa Group had defaulted on offshore bonds

downgrades to "restricted default" status even though Evergrande and Kaisa have not officially announced defaults
Evergrande has more than $300 billion in liabilities

In its note on Evergrande, Fitch said the developer did not respond to its request for confirmation on coupon payments worth $82.5 million that were due last month, with the 30-day grace period ending this week, and so assumed "they were not paid."

Markets in China and the US do not seem spooked by this news at the time of writing.

It's interesting to note that Goldman Sachs recently advised clients and other banks/funds to start buying Chinese property bonds - they see them as 'undervalued'
You really cant make this stuff up. I'm sure I'm not alone in feeling disgusted by the way some of that 'free money' the Federal Reserve is printing is going directly to help prop up Chinese property companies that have no regard for honoring debt, leaving future US and European taxpayers to foot the bill when things eventually implode.