Evergrande: The Deteriorating Situation in China - Fed Watch 64

2 years ago
8

The story of Evergrande, its larger implications, and the Chinese recession, is a fascinating one, happening right in front of our eyes. In this episode of FEDWATCH, we get to have a closer look at the details surrounding it and reflect on some of the arguments made in Episode 60. To kick
things off we get to have a look at the lay of the land, depicting the kind of financial trouble that Evergrande finds itself. They are currently trying to liquidate their assets, including land, apartment units, commercial real estate, and more. The results of this are price decreases for
the market and the spread of these effects is quite alarming and pervasive, with real estate being the main form of investment for the Chinese public. To complete this picture, we also discuss the steps the Chinese government is taking, and how these limitations are affecting the culture and the lifestyle of its citizens. We also explore the larger, global implications of this
recession for the rest world, and discuss inflation and misallocation. So for all this and more, on an extremely important topic, be sure to listen in with us today!

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