4 ms·

Ye the competition is too high in the base and the profit taken by middle men. However, I think covid changed that, where producers collectivly realized that i

Ye the competition is too high in the base and the profit taken by middle men. However, I think covid changed that, where producers collectivly realized that if they just raise prices the middle men need to pay up. Being stuck in a sector that operates "efficiently" sucks. You want guilds, like lawyers and doctors, or inefficiency, like the financial sector.

Anotheroneagain 3y ago
No, not like that: Evergrande is in the first group here, fruitlessly producing something of no real value, as there is too much of it. The second group are those who invested in Evergrande itself, or the housing it built. It sucks for everyone. It sucks for Evergrande, as sooner or later it had to go bankrupt. It sucks for those who invested in the housing, as it's clear that if they actually tried to sell or rent out the housing they would end up with some paltry sum. It sucks for those who invested in Evergrande, as they're going to lose money. It suck ls for those who can't afford a place to live because of the inflated prices. I think there are really no winners here. No middlemen filling their pockets. It was a loss for everyone.
- petesergeant 3y ago
  > I think there are really no winners here As with any bubble, the winners are the people who cashed out at the right time
- foobarbaz33 3y ago
  > It suck ls for those who can't afford a place to live because of the inflated prices. Wouldn't a bubble pop help these people? Wouldn't the ruling class on the opposite end of the leverage chain have benefited greatly with stacks of cash? The fun party is over now, but at least profit was successfully extracted from others. The extreme losers being people on the other side of the chain, paying mortgages on property that will never be built.