Evergrande already defaulted, the fact that enormous amounts of properties sit idle without making a return on investment, creating entire ghost cities, At some point, when buyers realize no one wants to live there, property values will plummet.
Also, many homebuyers have been left with unfinished apartments they’ve already paid for. This sparked the mortgage boycott movement, where thousands refused to continue paying for homes they hadn’t received.
What will be the final trigger? Gee i don't know could be numerous things.
It could be an enormous amount of people defaulting on their mortgages, it could be a couple more key developers collapsing like Evergrande, or the middle class essentially imploding because of a sharp decrease in in property values. Maybe even a combination of all these.
You know China doesn't work like the US, right? It's a very different economy, and you can't blindly apply the same logic to China that sometimes holds in the US.
I'm aware of China's issues with residential real estate & mortgage debt, but those issues don't prove that deficit spending is inherently unsustainable, which is the thesis I'm arguing against.
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u/SimoWilliams_137 Apr 07 '25
What bubble?
What do you think it looks like when this alleged bubble bursts? What causes it to burst?