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> the soaring cost of gas and electricity were the firm’s largest and most worrying expense Difficult to have factories when basic utilities are expensive. Chi
by dmix 11mo ago
> the soaring cost of gas and electricity were the firm’s largest and most worrying expense
Difficult to have factories when basic utilities are expensive. China has a big advantage there as well, not just in labour costs. They invested heavily in energy infrastructure over the past few decades.
- xwolfi 11mo agoHow did they invest in that infrastructure ? The LGFVs they used for that are so large the only way to pay for their loans is to throw in new LGFVs. If there's a place where the music will stop really suddenly and really hard, it's in China, where all this infrastructure to build cheap glasses will completely crumble under the cost of its own financing. They're not increasing margins, so they're not gonna match their bond yields...