3 ms·

What's the worst that can happen? It's all just numbers on papers or memory. When Evergrande folds, others will pick up the opportunity. Why should the governm

by slushh 3y ago

What's the worst that can happen? It's all just numbers on papers or memory. When Evergrande folds, others will pick up the opportunity. Why should the government and the non-investors pay for government agencies that enforce regulations? If investors cannot handle due diligence, let them pay private agencies to secure their investments.

alex_duf 3y ago
Any financial crisis was just numbers on papers or memory. Yet implications are very tangible
ben_w 3y ago
> What's the worst that can happen? The Great Depression, the Great Recession. > Why should the government and the non-investors pay for government agencies that enforce regulations? Apart from them being ostensibly a communist nation, it's good for business. Everyone's business. This is also why Greece got a lot of help from Germany and the IMF about 10-15 years back. > If investors cannot handle due diligence, let them pay private agencies to secure their investments. How? The investment is a promise to build a home.
- sam_goody 3y ago
  >> What's the worst that can happen? > The Great Depression, the Great Recession. If China descends into chaos, it could be alot worse than the Great depression, since so much of the world depends on China, and since they have a crazy arsenal of weapons.
  - ben_w 3y ago
    The Great Depression was almost certainly a contributing factor to WW2.
    - qwytw 3y ago
      Yes, the nazis were a fringe political part polling below 3% before 1929. The Weimar republic was relatively stable and it seemed that the biggest economical issues were already behind..
itronitron 3y ago
Worst that can happen? If banks have used peoples' savings to purchase Evergrande debt or anything related then the banks may not get repaid which would result in the banks losing peoples' money leading to people spending less money resulting in a recession or depression.
- landemva 3y ago
  Instead of default the bad debt and a recession, what alternative is there? Prop it up a little longer? Default on everything, go to CBDC, and issue everyone monthly CBDC tokens to buy food?
  - rightbyte 3y ago
    I guess you could forgive the loans people took for houses that were not built and let the bond holders share the hit.
    - IG_Semmelweiss 3y ago
      I think some of the bondholders are banks. The others are ccp cadre. That will trigger a run.
SomeoneFromCA 3y ago
Mandatory liberatarian "let the market decide" post.
oblio 3y ago
> What's the worst that can happen? It's all just numbers on papers or memory. Pardon my French, numbers on paper my ass. Economic uncertainty leads to people killing themselves. Suicide rates go up during recessions and depressions. https://www.frontiersin.org/articles/10.3389/fpubh.2022.907052/full https://www.frontiersin.org/articles/10.3389/fpubh.2022.9070... > In general, economic crisis, unemployment rate and other macroeconomic measures are associated with increased risk of suicidal behavior at the aggregated level.

by slushh 3y ago

alex_duf 3y ago

Any financial crisis was just numbers on papers or memory. Yet implications are very tangible

ben_w 3y ago

> What's the worst that can happen? The Great Depression, the Great Recession. > Why should the government and the non-investors pay for government agencies that enforce regulations? Apart from them being ostensibly a communist nation, it's good for business. Everyone's business. This is also why Greece got a lot of help from Germany and the IMF about 10-15 years back. > If investors cannot handle due diligence, let them pay private agencies to secure their investments. How? The investment is a promise to build a home.

sam_goody 3y ago
>> What's the worst that can happen? > The Great Depression, the Great Recession. If China descends into chaos, it could be alot worse than the Great depression, since so much of the world depends on China, and since they have a crazy arsenal of weapons.
- ben_w 3y ago
  The Great Depression was almost certainly a contributing factor to WW2.
  - qwytw 3y ago
    Yes, the nazis were a fringe political part polling below 3% before 1929. The Weimar republic was relatively stable and it seemed that the biggest economical issues were already behind..

itronitron 3y ago

Worst that can happen? If banks have used peoples' savings to purchase Evergrande debt or anything related then the banks may not get repaid which would result in the banks losing peoples' money leading to people spending less money resulting in a recession or depression.

landemva 3y ago
Instead of default the bad debt and a recession, what alternative is there? Prop it up a little longer? Default on everything, go to CBDC, and issue everyone monthly CBDC tokens to buy food?
- rightbyte 3y ago
  I guess you could forgive the loans people took for houses that were not built and let the bond holders share the hit.
  - IG_Semmelweiss 3y ago
    I think some of the bondholders are banks. The others are ccp cadre. That will trigger a run.

SomeoneFromCA 3y ago

Mandatory liberatarian "let the market decide" post.

oblio 3y ago

> What's the worst that can happen? It's all just numbers on papers or memory. Pardon my French, numbers on paper my ass. Economic uncertainty leads to people killing themselves. Suicide rates go up during recessions and depressions. https://www.frontiersin.org/articles/10.3389/fpubh.2022.907052/full https://www.frontiersin.org/articles/10.3389/fpubh.2022.9070... > In general, economic crisis, unemployment rate and other macroeconomic measures are associated with increased risk of suicidal behavior at the aggregated level.