China’s Economy in a Deadlock: Masses Stop Mortgage Payments, Banks Reject Foreclosures
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- Опубликовано: 1 окт 2024
- China's economic downturn has led many people to stop making payments, flooding the market with auctioned properties and causing prices to continue to drop. The emergence of these defaulted properties also means increased bad debt risks for banks. Banks refuse to take on this risk and do not agree to use auctioned properties to offset debts.
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These are the same Chinese people that were making fun of Americans for owning only one home. These were the people that were bragging about how successful they were because they own 3 or 4 homes. I guess they don’t brag anymore.
Sure they do. They'll brag about how many homes, storefronts, etc., they have, even as they're defaulting on the mortgages for all of them.
They live in a communist country they don't own anything really.
Now the China people are crying.
yeh they own 3 houses , each worth nothing basically and are not even built yet in some cases... but they own them sure.. why not?... 🤡
Patriotism of Xinnie PorkPooh #slopagandpa
- With stimulus and measures, China's debt will be at 400% to 500% of its GDP in the next decade, according to Reuters.
-Chinese 🇨🇳 property Ponzi sector, which accounts for 30% of GDP, is crashing
-Tofu Exports and Western imports, accounting for 37% GDP, are down.
-Foreign investment is falling over 90% compared to it's peak in 2018.
-Foreign visitors are down 96% compared to the pre-pandemic level in 2019 with less than 200 americans left.
-Consumer prices are experiencing hyperstagdeflation.
-Youth unemployment hits over 21% (in reality 50%+ after eliminating faked CCP official numbers), a record.
-It's fast shrinking workforce is 10 years old than neighboring countries.
- During the years 1990-2021, the US printed 6.5 time more money while China printed 147 times.
- It has printed more money than the US and Japan combined, while it's economy is only half of them.
- Current Chinese debt-to-gdp is already highest in the world, at 300%, according to Bloomberg.
Mengze harvard daughter: lives in US brother: australian green card daughter in law: british green card sister: canadian citizen brother in law: canadian citizen second sister: australian green card second brother in law: australian green card
Arctic Catfish Shenzhen Zhong gengci:Laughs at the Leeks feeding her
WOW SO GOOD AWESOME Organ Leeks #sloprosperity #theskydontlie
There is a saying in America 'If you owe the Bank 10,000 dollars; you have a problem. If you owe the bank 10,000,000 dollars, the Bank has a problem"
-If the banks owes you $10 Million -much worse.
American banks go for foreclosures. But over in China, they do not want your depreciating properties, they want you to pay till you drop. No foreclosures for you.
China property market requires home buyers to pay upfront for a home that hasn't even been built yet. So the property developers use that money to buy more land for future developments. What could possibly go wrong here?
A MILLIONS of EMPTY and unfinished homes. That's what can go wrong 👀🙄🤣🤣🤣🤣🤣
Ponzi scheme, real estate edition
@@mariapug Yep. Charles Ponzi would be proud.
IKR.
Haven't they heard of progress payments?
@@RUHappyATM Nope.
"Developers are suffering"
This situation is their goddamn fault
Them, the ccp, and the banks. The leadership in the ccp is ultimately responsible, more than any other parties.
Don't take the Lord's name in vein.
@@SomeUserNameBlahBlah *vain.
Don’t forget the fifty million rural men who can’t afford bride prices. There aren’t enough women . Due to that one child rule for decades.
Houses are for living in, not for speculation.
Anything that keeps increasing in value for a while while makes people greedy.
@@ajkulac9895 where else can you put your money when you live in China? You can't export it, you can't put it on the stocks market, there is virtually nothing else than real estate or gold, and even gold is fake
Hahah 😂 I mean I won't lie .as a millennial who will never own a home In the states cuz how much prices times have changed since bommers bought houses, I won't lie, xi was not necessarily lying. He just happens to be not educated and don't know anything about economics. Sooo yea .
Hang in there and only pay 25% of your payment for a house you will never see...
It’s a stupid system, you think you’re buying a home but you don’t own the land, lost ownership after 50 years,
it's true, but in their case they are buying apt and condos, so the land was never in question anyways.
Not stupid for the ccp :)
It’s called communism
I live in a country with no property tax. Could say the same for American houses, you buy it but then you have to keep paying on it because tax, and if you don't they take it away. So you don't really own it from my perspective.
@@ajkulac9895 Yeah, but in this case I side with America for once. It's stupid to 'own' something of such importance forever. The only truly unreplenishable resource on earth may be its surface. Even with expensive land reclamation the 'nice' spots are finite; thus old wealth prevails (unless ludicrous and unavoidable inheritance tax is implemented and justly distributed).
If nobody pays depts, nobody has depts
Banks go out of business, maybe bailed out by government.
@@robertewalt7789 Good.
Nope. That debt eventually keeps switching hands from one defaulter to another until it eventually ends up with the government. And then the government, offsets these debts in the form of increased taxes, policies, increasing service bill tariffs, increase in cost of products, etc. Ultimately till ending up costings the civilians that took the debt to share it with everyone now. That's exactly what's happening in China now. In the form of Inflation, rising ticket prices of transportation, rising mortage rates, increasing difficulty of withdrawals from banks, etc. And to think that this is just the start of China's long debt crisis implosion. This is going to keep happening for at least a decade, that is just how immense the debt bubble that has burst is in China. A decade a stagnation. Just like what happen to Japan in the 80s when their property market crashed hard. Japan hasn't even come out of it's stagnation yet
Confucius says there are no homeless people in China 😃
Great comment
Confucious aka Kong Qiu is a damn liar...
Confusious is right if his teachings are actually followed, but the CCP has corrupted China and is a syndicate and cartel pretending to be a government
Yes, but there are millions of peopleless houses in China 😩
@@sprague49definitely doesn’t equate to being the same thing 💯
This the Great Depression 2.0.
Worse
It won't create a depression anywhere else but China
China or unfortunately the CCP will learn the truth behind the old saying " Never bite the hand that feeds you "
All that has happened is that America is now moving it's manufacturing to mexico because the mexicans will produce good quality goods and they are alot closer to the US
It’s here already
Pretty soon we going to hear that the Chinese are trading houses like poker chips to buy groceries.
all should stop paying
This is a classic case of, if you owe the bank $1000 dollars, it is your problem, but if you owe the bank $100,000,000, it is THEIR problem. Edit: fixed at the suggestion of comments. :P
You mean THEIR problem.
Or in this case if a million people owe the bank $1,000. Or more like $100,000.
THEIR
Love this
Only when you are talking about China is people still must pay a mortgage they defaulted on.Did they miss school when the idea of bankruptcy protection law would be a good thing?Oh yeah,companies in China can do it but home owners don`t. Liability protection is important in capitalism otherwise people can never get a second chance in life.Willfully stealing money from a bank is wrong, for sure but that is why banks need to do their due diligence before giving loans. The bank has to make sure the property is at least worth the loan amount or close to it, or a mortgagee should have some assets.
China banks were passing out money willynilly so they should have to be mostly responsible for over extending.Only in China people are indebted for life through no fault of their own.
The government`s COVID policy killed jobs that wiped out people`s ability to pay.Real estate companies defrauded the mortgagees by stealing their down payments on unfinished projects.Banks should be looking for assets of the owners of commercial thievery. Bankers are to be blamed for not understanding the market and gambling big time and CCP government is to blame for their insane policies and laws.
Consumers have some of the blame as well. So many videos show people not understanding loan terms and speculating in real estate when they can't afford the expense. These people act like children.
Housing prices will drop until it is less than 1000 RMB per square meter.
Sure, kid.
@@justicedemocrat9357I mean honestly it's possible, maybe not until 1000 RMB but it sure as hell will keep going down
China’s Economy in a Deadlock
Gee you mean docialism doesn’t work !
i mean between a loan of 70 years or 150 years, what's the difference ? You fuck your people already with the 70 years loan then just give them space to breathe and even give them loan on 250 years !! If you can build a house that can last more than 10 years of course !!
Hey most modern US homes may not outlast the mortgage .
This is a classic macroeconomic nightmare created by the CCP going way back in 1994 when they took the Yuan off the international exchange. Now in 2024, the banks and the average Chinese citizen have no idea what is the ACTUAL value of anything within the mainland. Any stimulus from the Central Govt. will be meaningless & ineffectual because the the Central Bank is a part of the CCP & not independent of it. Thereby merging both fiscal (govt.) & monetary (private) policies into one ongoing disaster. Local provincial govt. were doing stimulus spending for decades in tandem of the "China Economic Miracle" which will undermine any Central Govt. stimulus during an actual depression/recession.
What the hell are you babbling about the value of the yuan is whatever you can buy with it.
it's past time for ccp china to allow the yuan to be valued on global currency markets.
The international market would see the value of the yuan based on the corruption behind it. Very problematic.
Markets need to correct themselves. When autocrats interfere, it just delays and increases the pain.
Wealth gap is going to get even insanely wider. There are still 2nd hand apartments($1 million) in 1st tier cities that are selling like hot cakes among the wealthy. 2 different world in 1 nation. 😂
hunger games, they are already building the infrastructure
At least there will be lots of empty homes to home all these new poor and homelessness people over there.🤔😵😅😖
Communists loosing against capitalism, a story as old as international trade. 😊
They're not communists, they're the mafia
Pooh wanted to go down in history and now he has ... as 'Poverty Pooh'.
Stupid mindset. Making mountain out of a mole hill toadie
And this is the country that want to fight Taiwan
i bet their gear is just like their buildings.
Excess of everything is bad too much construction is also bad, what is the use of creating so much concrete jungle creating more supply than demand China could not digest sudden growth in recent years hence collapsed 😅
The Chinese who have loans of nonbuilt homes should default and never pay for property that was never built or built improperly. How can a business or bank make a loan for an unbuilt home or a home that is not built properly?
And the bank has little collateral.
It’s a bootstrap paradox
I would suspect that if it were easy to walk away or default, they would. In Canada, a person can’t just walk away from their debt.
Interesting strategy. You know it's serious when the bank says, No keep the house and pay us a fraction of your monthly mortgage payment.
foreclosing atthis point would cost them even more money and speed up the collapse, and its not like the bank could sell the house anyway after.
The bank knows the true value of that asset.
I purchased 3 homes in Obamas sixth year for 30% of previous value . It’s my plan right now , sitting on cash.
@@ytSuns26 Obamas 6th year = Biden's 2nd year? 😁
Jesse it took Obama longer to wreck real estate . Biden is setting a record 3.5 from a great market to stale inventory . So yeah that works. Inventory levels have doubled , days on market is long getting longer. Some markets are dead in the water. Home under 400k really selling at all , big ticket homes are doing ok. It’s the rich folks that are making money hand over fist thanks to bidenomics.
The Chinese housing market is suffering from a downwards spiral due to extreme oversupply. Demand used to be high because people THOUGHT homes were a good investment, so people rushed to buy them, and construction companies and real estate firms rushed to build more to sell. Now that people know that they’re not a good investment and are increasingly worthless, people aren’t buying, and people with them are trying to sell. But, there’s so many in supply that the prices keep dropping. As prices drop, people are more incentivized to get rid of them before the value drops even further. A vicious cycle of demand drops, supply increases, and price drops repeats over and over.
Can you imagine US banks saying, "It's ok, hang in there. Just make 1/4 payments." 😂
Your stuff would be on the street the first day of the month
Because they can afford that.
living, california yes i can... can you imagine getting the highest taxes in the country, our streets are filled with shxt and only cleanned for xi jinping, then the audacity to lose 44billion dollars and try to tax us 30cents every mile, now guess what he proposed a internet tax ....... wtf and he thinks he can be president is insane. he will take bidens crown of thhe most destrctive president from wokieland
Can you imagine a US bank trying to get money from a person who declares bankruptcy and those banks collude with the government by making it a crime for people unable to pay for a property when they no longer are in possession of it?
The US real estate market will have to go through something similar, but less extreme, due to the same pressures. When a real estate market is overheated due to speculation, this happens. We're a couple of years behind, but our levels are unsustainably driven by flippers... it's a bubble. When it pops, it pops. At least we didn't build quite as many luxury condo apartments, but that's not the primary reason for the Chinese real estate bubble bursting.
If China had better relations with the west this would be a prime time for foreign investment. Alas it is just far too risky.
You would have to be a fool after China shows its true face.
Great reporting ,thanks.
so china is throwing it back to 2008
More like 1929.
No wonder, it is difficult for depositors to withdraw money in their banks because of liquidity problems due to non-performing loans. Unlike in the west, banks can just file bankruptcy while the deposit insurance pays their deposits to a certain amount.
The vast majority of real estate inside of China will NEVER stop falling in price value, because the official artificially set market price is not realistic and the income and overall asset wealth of the Chinese is dropping and it will continue to drop for at least 5 years. There are too many structural and economy defects inside Chinese society with business, legal, and economic aspects that make it virtually impossible to fix all types of property issues. The country is run by communists that do not aspire to maintaining an environment similar to the West. There is no legal relief from debts caused by situations not in your control.
a broken clock is correct twice a day
central planning works for a small Window in Business cycle then.....bang
The problem Chinese homes are owned by the state hence needs to change its method made individuals owners for life so that they can pass onto their children.
This is like a broken record now!
2024 will be a great year in the next decade.
Youth unemployment is only 20% and house prices have only fallen by 30%. But in the future house prices will drop to less than 1/10, youth unemployment will be over 50%, and middle class people over 35 will be unemployed and have their wages cut, with no possibility of reemployment. And most local governments and banks will go bankrupt.
How will you live in a world where real estate companies, local governments, and banks across China have almost gone bankrupt? That is your challenge for the future (will you own a worthless house and pay the mortgage?). Pensions will be bankrupt and your daily wage will be $2.
AI 5G Financial FailExpertise
CCP want a poor population, easy to control. North Korea is a model to them
Time to live like savage and go back to hunter gatherer lifestyle
We will own nothing and be happy
@@pauls5819they will give you fentanyl son much 😂
Tip for Chinese people: Stop paying mortgages and let the banks fail because CCP cannot bail anyone out. Once chinese banks fail you the debtor will be the owner or can claim to be the only owner of your house/real-estate which this mass of new Chinese home/real-estate owners who no longer have mortgage debts will help to relieve China economic downturn.
Good one tho,Just hide in the jungle and live a primitive life while you wait for this storm to settle.
Ở Trung Quốc, một người không trả nợ ngân hàng, thẻ tín dụng. Chính phủ khóa thẻ ngân hàng của họ, đồng nghĩa với việc nhận án tử. Họ không thể đi làm, không thể tham gia giao thông công cộng, không thể mua hàng trực tuyến.
@@minhminh2011 Reminds me of a bit from Max Headroom. "Credit fraud? That's worse than murder!"
"10,000 Yuan?! Ahhh geeezze dude....best I can do is 100 yua...."
Chinese properties should be based on minimum wage x 12 months because of common Prosperity
Cash out and get out of China. Might as well start a new life.
Most of the rich have already left a few years ago. Middle Class trying to leave, but Gov makes it difficult. Leeks are stuck unless they are good swimmers.
28 June 2024 :
Thank you for your presentation , I watched all of it .
Smart bank.
Treat the people like human beings and they will want to help the bank get a grip on this terrible situation.
And to add insult to injury, the food is uneatable, the water is undrinkable and the air is unbreathable.😅
India too.
Once again, this is disingenuous. There is one reason the Chinese people are suffering: the CCP.
Xi is continuing the previous financial/social laws and customs or making new ones.
The buck stops with him.
This is a guy whose last formal education (that was education driven not policially driven), was ELEMENTARY SCHOOL. No, his chemEng degree doesn't count becuase it was a Worker-Peasant-Soldier degree that prioritised your job history and CCP affiliation over your abilities in the chosen field of study.
Take your average 12 year old western boy, given him all the insecurities and arrogance of puberty and a nice big chip on his shoulder about foreigners and intellectuals, and put him in charge of one of the largest economies in the world.
That's Xi.
No real estate investment in the whole will give you a divine right to make money. They just got carried away speculating in properties instead of investing. The blame should be levied on the housing authorities too. They should have stop the rising prices by punitive measures by requiring the buyers to put up more cash and developers from over building and having more cash liquidity. Don’t let greed overtake your sanity and numbers. Be conservative when investing not
speculating. Lesson learned.
3.4 million RMB for an apartment in the PRC?
Who's crazy enough to buy these on local salaries!
The Chinese people believed that the more debt you could take on, the WEALTHIER YOU WERE. WRONG.
Jack Ma: "As the Chinese like to say, if you borrow 100,000 yuan from the bank, you are a bit scared; if you borrow a million yuan, both you and the bank are a little nervous; but if you take a one billion yuan loan, you are not scared at all, the bank is,"
Bank dont want a house allows you to pay quater...
So house is worth less than quater of debt on it....
The banks don’t want the depreciating assets either.
Ten cents on the dollar, if the market stabilizes
It's OOFconomy!
A rolling loan gathers no loss. This is a weak attempt to avoid loss recognition on bad loans.
The Chinese property market is so dire and dreary that housing owners and property developers have seen their property prices plummet regardless of the government intervention. If this trend presumably lingers, it would further amplify the insurmountable shortcomings of the CCP governance.
You’ll never see the 20~40% commission, promises - promises never kept.
How do I short the Chinese housing markets
what you get
You know who is really being hurt in China these days? Its the people that makes those sales models that every building seems to have. I dont see that business breaking any sales records.
Most of them have migrated overseas with their earnings . . . 😀
Winter is coming.................
Let's remember history over the last 40 years: 1990: Japan Bubble Burst...Property Collapsed. 2008: US Bubble Burst...Property Collapsed. 2021: China Bubble Burst...Property Collapsing. Cycle of life...
Why would Russia go into a contract with them then? That doesn't make any sense at all.
Same applies with American banks if the funds were required legally one has the right to have access to it.
1.59% , 3.4 trillion yuan increase 141.4 billion yuan, record high of 3.23 trillion yuan in 2023. 417.3 trillion yuan increase of 9.8%. NPL balance at 3.95 trillion yuan increase of 149.5 billion yuan from 2023 with npl ratio of 1.62%. NPL rate rose from 4% to 6.5%. Very interesting. Very fun.
..such a proposal to pay 1/4 amount of mortgages are similar to; paying just interest w/o the Principal. What would happen, it will create a new mind-set for all Chinese Home buyer: DO NOT BUY YOUR HOME ... RENT instead. CASH in one's hand is KING !.
Save the coin the buy it back at auction lol.
Check out the 'condos' in the Gold Coast in Queensland AUS, Michael, for comparisons. It is Australia's 'Miami' and may also have problems but we have full recourse loans here, so banks are 'safe' (so they think). The AUS govt 'guarantees' the banking sector so that could be disastrous for the exchange rate in a big world crash !
You'd have thunk China would have learnt something from the 2007/8 property bubble & crash in the West. It seems people are doomed to make the same mistakes over & over again.
The massive drop in property values needs a new kind of thinking from Banks, real estate companies and those who bought those homes at the peak. Repossessing doesnt give desired results. Who will buy those homes? Maybe people involved in some business sectors may be doing very well but overall the situation is very bleak for over half the population. I think banks should declare a two year roll over and stop fresh lending. In these two years they should just allow minimal interest payment or even no payment. A collapsing real estate sector in a country where real estate accounts for >25% of GDP will trigger a massive - across the board collapse. In such situations the real estate companies should be willing to reduce the prices of already sold properties because that is a way to infuse confidence in the market. Banks on their part should forego 50% of their interest payments fo the next 3 years. It makes sense for everyone to become pragmatic. To stem the collapse the Central Bank, the lending banks and the buyers should arrive at an acceptable solution. This could also be a time for China to deflate their economy.
What a dump
The banks will now wait for the property market to make it profitable before they will foreclose. That is better at least. The former owner is responsible for the difference between the debt owed and the price that the house sells for.
You are saying that China's economy is dying yet china is prospering in the eyes of the western nations! I'm not saying you are spreading false rumors nor I'm a supporter of the communist party of china but I just wanted to point out the fact that by looking at your content for over a year, shouldn't the CCP regimen over there be done by now? People should have been done with CCP by now and yet they seem to have immense control and power over the people. Correct me if I'm wrong, what you are showing us is actually a small percentage of the people wronged by the CCP and others are still in full support of the communist regime, isn't it?
Who in his right mind will take these houses even if given out free. 1. You will pay high mortgage. 2. You can't live in the house due to bad construction quality. 3. You probably won't be able to resell the house. You will be the last fool (holding the chamber pot full of crap) in the line of fools.
GOOD 🇺🇸
Dont be deceived by this, they are always saying it is lowprice etc bs.. yes it is... and now it is as if they are saying foreigners you can take advantage of this...
NO WAY!
how sad
Foreclosures does not makes sense for banks if the market has collapsed. They lose even more money. it is the correct move the reduce the mortgage. But how long can the bank survive under such pressure. It only depend on how long the market will hit bottom and how much reserves do the bank has. Only time will tell.
This interest first is nothing more than an eyewash. The interest amount collected would appear on the balance sheet as earnings while NPA, non performing assets like housing loans, would continue to show as assets making it look rosy. The way the entire system of cash flow for the industry has been setup it requires the real estate prices to keep going up to survive. It simply does not and can't work since they are only notional.
Regardless the type of cash bitcoin. Digital currency or actual cash if it was acquired legally one has the right to have access to that money. In order to pay bills with. If the banks prevent it. Then there the ones responsible for one falling into. Foreclosure
Idealny pomysł, kupować nieruchomości ile tylko można a później nie spłacać a papier i tak zostanie zanim padnie wszystko 😏
Since China supported Russia for the war in Ukraine, exportations of chinese products went down fast
This created a down spiral which will be difficult to stop
6 trillion yen insolvent debt in 2023, makes me think this has been a long time coming. videos of ghost towns, empty and overgrown fill the internet.
Chines economy elephant drop from 50th multi story building of real estate at least 15 factures no way to save
Daily self fantasy day dreaming ownself said ownself happy deepfakes AI propaganda comedy channel for all.
Economist of China, Mr Sum Ting Wong claimed “something is wrong”.
Stop calling them houses!! They are 10Sq shit boxes..
This happened exactly in the west during the 2008 GFC.
If cant get your cash from the bank to pay bills with then ones not to blam in fall into mortgage foreclosures. Because ones not allowed to have access to the money one has.
Youd think they would have learnt from americas sub prime debacle
The best thing for any economy to do is to let all the rich take their losses and let the markets properly function by clearing out the financial excesses.
All homeowners should default, even if they can make the payments and only pay a quarter of what they used to.
I made my first million when I was 20 years old and I never looked back all from real estate
This is why Marxism and capitalism should be replaced by mutualism.
Is there no Bank of China? How do they have such loose financial controls in place to get here?
Exchange Rate may vary but if its legally made cash the banks cant prevent u access to it.
Just quit paying these banks and developers . What can they do about it?
Come on , it should be sold for 800,000 yuan , then that is called collapsed
How and why is all of this information being allowed to be reported???
communism doesn`t pay ; Confucius , just yesterday .
Why not sell some of the estate to the oversea Chinese for their retirement after many years of their hard work?😊😊
jody annes trouble
kristen pruniers stubble
wrapped double bubble