Open your business account with Statrys 👉 https://bit.ly/StatrysWebsite0:00 Intro1:48 The Switch Nobody Talks About3:53 The Price War You're Losing5:28 The ...
It’s pretty clear that there is very little negative impact from housing prices falling on the vast majority of the population. And it’s great news for young people who are moving from countryside to the cities and can now afford cheap housing.
The key reason why 2008 was a clusterfuck was because Obama decided to bail out the bankers and fuck the working class in the process.
I used to own a house free and clear. If the value dropped by half, I would still feel a lot poorer.
When the price of assets held as a store of value drops, the holders of those assets are impoverished. That’s already bad.
Now, when a fall in the price of assets held as a store of value drops, and that triggers a series of defaults that ripples across the financial system, that’s even worse.
I can’t see from the outside the degree to which Chinese society has been financialized, but I’m betting it’s more than the CCP wants to let on.
I mean, literally the first link in my reply is saying that household savings in China are at record high levels. 🤷
When the cost of hosing, the basic necessity for living, drops that is in fact a very good thing. And the record high savings number clearly demonstrates that housing is not a primary investment vehicle for majority of the population. As Xi put it, hosing is for living. This was an intentional policy choice and a correct one.
If you think that Chinese society has been financialized then you’re utterly clueless on the subject and have no business discussing it.
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Chinese household savings hit a record high in 2024 https://www.wsj.com/livecoverage/stock-market-today-dow-jones-bank-earnings-01-12-2024/card/chinese-household-savings-hit-another-record-high-xqyky00IsIe357rtJb4j
90% of families in the country own their home giving China one of the highest home ownership rates in the world. What’s more is that 80% of these homes are owned outright, without mortgages or any other leans. https://www.forbes.com/sites/wadeshepard/2016/03/30/how-people-in-china-afford-their-outrageously-expensive-homes
Student debt in China is virtually non-existent. https://www.forbes.com/sites/jlim/2016/08/29/why-china-doesnt-have-a-student-debt-problem/
It’s pretty clear that there is very little negative impact from housing prices falling on the vast majority of the population. And it’s great news for young people who are moving from countryside to the cities and can now afford cheap housing.
The key reason why 2008 was a clusterfuck was because Obama decided to bail out the bankers and fuck the working class in the process.
I used to own a house free and clear. If the value dropped by half, I would still feel a lot poorer.
When the price of assets held as a store of value drops, the holders of those assets are impoverished. That’s already bad.
Now, when a fall in the price of assets held as a store of value drops, and that triggers a series of defaults that ripples across the financial system, that’s even worse.
I can’t see from the outside the degree to which Chinese society has been financialized, but I’m betting it’s more than the CCP wants to let on.
I mean, literally the first link in my reply is saying that household savings in China are at record high levels. 🤷
When the cost of hosing, the basic necessity for living, drops that is in fact a very good thing. And the record high savings number clearly demonstrates that housing is not a primary investment vehicle for majority of the population. As Xi put it, hosing is for living. This was an intentional policy choice and a correct one.
If you think that Chinese society has been financialized then you’re utterly clueless on the subject and have no business discussing it.