Evergrande's $78 Billion Fraud

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Күн бұрын

The Chinese real estate giant Evergrande was recently ordered by a court to liquidate all of its assets. The company has also been accused of fraudulently inflating its revenue by $70 billion.
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0:00 - 1:15 Intro
1:16 - 3:36 Evergrande Background
3:37 - 8:17 Fraud Allegations
8:18 - 12:25 Liquidation
12:26 Conclusion

Пікірлер: 512

@debasishraychawdhuri Ай бұрын

he was put under arrest for illegal crimes, as opposed to legal crimes. :D

@FishBola1991 Ай бұрын

“Legal Crimes” are just the Chinese Government.

@FishBola1991 Ай бұрын

“Legal crime” is when the Chinese Government does it.

@4mb127 Ай бұрын

Rich and well connected people tend to do many legal crimes.

@raymondyu7933 Ай бұрын

It was extreme overleverage real estate investing, Unlike President Trump, who can still running business and presidency of united states, which is very unfair

@matthewstahler6525 Ай бұрын

Well, corruption is legal until it doesn't work anymore

@SupportSquirrel Ай бұрын

Evergrande's executives: Man, those Enron guys were onto something. We just need to think BIGGER.

@ultimaIXultima Ай бұрын

Smartest Guys in the Room. 😉

@Whatisthisstupidfinghandle Ай бұрын

Yeah. Except they picked a country where you get ex3cuted for fraud

@iamteamthinkbig Ай бұрын

Lol legendary comment!

@oakspines7171 Ай бұрын

Enron pales compared to Evergrande, the US Savings and Loan, and the 2008 mortgage collapse. US housing bubble will burst again. Nothing can sustain such a bubble rate.

@stephenc2481 25 күн бұрын

Invest wisely. go for safe companies and spread your investments. I would stay away from commie companies. At least, in the US, criminals are more likely to get prosecuted. Commies will sweep problem under the rug and leave you to fend for yourself.

@anushagr14 Ай бұрын

How could you cook your books so badly that even pwc refuses to work with you.

@robertkeyes258 Ай бұрын

you use gutter oil

@aitoluxd Ай бұрын

@@robertkeyes258 lmfao

@lornaj3310 Ай бұрын

I LOL'd

@gedecandra7722 Ай бұрын

hahaha

@blueyhis.zarsoff1147 Ай бұрын

If you want to do a large fraud, use a large accounting firm

@donhvc Ай бұрын

Considering prepayment as revenue is so sacrilegious it's like depreciating land. I wonder how much PWC let's slide before they were like all right I'm out.

@jasonq4816 Ай бұрын

I think these days Big 4 stamp of approval just doesn't mean anything anymore and it's not a China issue neither. Look at how far EY Germany let Wirecard go. Nowadays, if Big 4 say you're good, it doesn't mean anything good or bad. If Big 4 is like: ay, we're out, that's when it means something is up...

@nr12345 Ай бұрын

PWC will let anything slide as long as the payment clears. I suspect Evergrande started to fail PWC payments and that is why PWC quit the auditing racket. PWC is over the last decades been involved in so many shoddy company audits that its not just unlucky at this point.

@honor9lite1337 Ай бұрын

@jasonq4816 got it.

@gangsta8929 Ай бұрын

$70b

@nickoutram6939 Ай бұрын

‘Stage payments upon stage delivery’ are quite common in construction. Of course if nothing has actually been delivered apart from the vision that’s a bit different…

@MemoirsofaBasketcase Ай бұрын

1:38 “The company operated in various tiers of cities in China,” *shows clip of Chinatown NYC*

@antman7673 Ай бұрын

Stock images. Better than a blank screen. More for storytelling and imagination.

@AlexanderTheGoodEnough Ай бұрын

Eh, it's China adjacent

@palisadenhonko4962 Ай бұрын

Fun thing, there is a Taiwanese flag in the clip.

@palisadenhonko4962 Ай бұрын

@@antman7673but if the pictures are striking wrong, people are distracted and don't focus on the story. So for proper storytelling a blank screen would be better.

@Smallpriest Ай бұрын

Same thing 😂

@daredevilkk Ай бұрын

Like CPC or not. I think they took the right step in not bailing out the company. Companies that fail, should be allowed to fail. Taxpayers money should not be used to save investors.

@jxxxxx44 Ай бұрын

Ccp

@dirremoire Ай бұрын

No stock market manipulation either. If the market falls, it falls. The CPC couldn't care less.

@jxxxxx44 Ай бұрын

@@dirremoire THE CCP NOT CPC YOU FUCKWIT DONT FALL TO THEIR PROPAGANDA

@Vhlathanosh Ай бұрын

@@jxxxxx44 CPC, CCP is an American propaganda.

@LOLBTLOLBT Ай бұрын

they fumbled the ball big time, comparing this to how us handled svb, the ccp looks like amateurs, anyone with a brain would know it's bankrupt the moment they see the book, the government shoulda freeze the asset, liqudate and sell off the asset immediately to stop further loss, instead they allowed asset to be stolen off for 1 yr while dragging down the whole economy, such retard move can only be done by the ccp

@corgano6068 Ай бұрын

Honestly good on them for having the balls to tell a large corporation to bend over. 2008 taught American banks that they have total immunity as long as they're big enough. At least in China the other property developers are going to see this and scramble to make sure their pocketbook is in order

@luipaardprint Ай бұрын

I mean sure, but what about the millions of people that lost their life savings?

@corgano6068 Ай бұрын

@@luipaardprint millions of people DID loose their life savings. The retirement strategy of a significant portion of the population is sell your house -> use money for retirement. Rewarding the banks that lied to investors about their bonds being stable creates an incentive for future recklessness. If you're going to give any money for the banks then the government should literally own them. If the banks want to be private again they can buy back their stock - from the government - paying back the bailout. If the banks doing this crap go under they deserve it.

@kkkkkkkkkkkkkkkk0123 Ай бұрын

This was actual fraud tho. Ib America it was because of greed on one end and a lack of financial understanding and luck on the other. People shouldn't have taken loans but were allowed to.

@d_ling28 Ай бұрын

@@luipaardprint It was incredibly unstable business structure in the first place, it was bound to collapse. The government regulations just sped up the process. Atleast the people responsible are actually being punished for their crimes

@xx765 Ай бұрын

@@kkkkkkkkkkkkkkkk0123 well loads of people up and down the US subprime food chain de facto know that it was putting random price tags on properties in the middle of nowhere and underwrite securities at the made up face value. It's slightly more subtle but still very scammy.

@TheSateef Ай бұрын

since most of these apartments were bough for speculation, not to live in, even if finished they will be worth nothing.

@Devilishlybenevolent Ай бұрын

Yeah, its kinda hard to feel bad for them when these people wanted to buy future housing just to be landlords/investments. Greed.

@vanillatornado8390 Ай бұрын

@Devilishlybenevolent what a low IQ take. If you have any retirement investments of any kind you're doing the same thing. So is everyone else. Imagine trying to virtue signal against individual civilians for trying to legally invest their money. Talk about a loser.

@nr12345 Ай бұрын

This is part of the massive slowdown in property sales when the CCP brought out rules that property sold to be lived in and not just speculated after years of allowing property sales for speculation purpose only. This sudden change put a nail in the coffin of generating future sales profits to be spend now.

@Paetaor Ай бұрын

@@Devilishlybenevolenteven worse is that they were not allowed to buy productive assets so bought these houses.

@Stoneface_ Ай бұрын

@@Paetaordefine " productive assets"

@irdestroyer Ай бұрын

Pretty bold and stupid to do this in a country that uses the death penalty for white collar crime.

@martinketchum Ай бұрын

for some people short-term luxury is worth their life, its sad

@tomlxyz Ай бұрын

Pretty much all rich people and high level politicians in China are involved in corruption. It's only enforced when you become a problem for the party

@equious8413 Ай бұрын

I don't agree with China on much but...

@o_o8203 Ай бұрын

You can get the death penalty just for being pulled over in the US, even if you're unarmed.

@AnimatedHistory8212 Ай бұрын

As@@o_o8203

@tuomasholo Ай бұрын

Please talk about those homes completed and delivered after the developers filed for bankruptcy. Chinese owners are claiming the workmanship and materials are sub standard and some are dangerous they claim on Chinese social media.

@mx338 Ай бұрын

I hope the CEO gets the wall, China is one of the few countries handing out proper punishments for white collar crimes.

@fivefootten Ай бұрын

Make all the higher-ups walk toe Great Wall barefoot.

@zxt5148 Ай бұрын

Yes. Its great when the state unalives people we dont like, right?

@wehavebiscuits Ай бұрын

@@zxt5148 not people we don't like, people who objectively lack empathy

@themuffinlord6442 Ай бұрын

As if Hui Ka Yan wasn’t working for the ccp lol

@themuffinlord6442 Ай бұрын

He was or maybe still a Party Committee Secretary for the ccp lol.

@antman7673 Ай бұрын

Kinda the expected result for Evergrande. People investing in Evergrande, expecting government intervention were not considering, that their money made not bailing out investors even more attractive.

@thewhitefalcon8539 Ай бұрын

Right. They only bail out billionaire's money. They won't bail out normal people.

@jeffw8218 Ай бұрын

Huh?

@ktktktktktktkt Ай бұрын

5:30 Yes prepayments cannot be considered revenue but it is not correct to say "based on standard accounting principles this should not count as revenue until the final product has been delivered." The construction industry often applies percentage of completion method since builds are long-term projects. They are allowed to record revenue on a project based on an estimated completion percentage, given certain criteria. This is true despite the final product not being delivered.

@uselessDM Ай бұрын

The main issue seems to me that the chinese economy basically was or is still based on real estate and most of that speculative in nature. Evergrande is just a symptom of that.

@thewhitefalcon8539 Ай бұрын

Every capitalist economy is like this

@kendalson7100 Ай бұрын

Yup. Homes are places to live, not "investments" to be flipped.

@xyzmediaandentertainment8313 Ай бұрын

Wrong. Housing is a part of it. But import/export and manufacturing are the main causes of china's growth and expansion

@anushagr14 Ай бұрын

@@xyzmediaandentertainment8313in terms of gdp real estate accounts for 30%

@uselessDM Ай бұрын

@@xyzmediaandentertainment8313 Not really. It's not a secret that investment in infrastructure and housing was a huge part of chinas growth and also the reason they are struggling at the moment, since that model is no longer sustainable. As I said, Evergrande is just a symptom of a bigger problem.

@AntonOfTheWoods Ай бұрын

The main problem is outrageous malinvestment in property. They should have pulled the plug almost a decade ago. In all but a few of the top tier cities there are literally millions of empty apartments. There are probably more apartments than people now, and if you add all the empty village houses left outside the cities then the situation becomes truly comical. And they are still building like there's no tomorrow!!! Cities (let alone towns) where the population is decreasing, that probably have as many apartments as individual people, are still building... My in-laws live in one of the fancy developments in a third tier city that was built ten years ago and is still only about a third full. From their 25th floor window you can easily see all the empty apartments. And visible outside the development area? About 10 new 30+ floor buildings going up!!! It's pure insanity!

@dirremoire Ай бұрын

This would never happen in America! The government would bail out. The company would get a bailout, nobody would be prosecuted and small-time investors would lose everything.

@samsonsoturian6013 Ай бұрын

We should charge you with securities fraud just for saying that

@fivefootten Ай бұрын

@@samsonsoturian6013how so?

@watericed777 Ай бұрын

Whatever some may think of China’s system of governance, they’re filled with competent leadership especially at the top with Xi trying to cut corruption from society. It’s good they let the company fail while still ensuring homeowners get their homes finished to ensure the stability of society. America focuses on “democracy” (which is an illusion) whereas China focuses on competency and social good.

@johnbennett757 Ай бұрын

TARP recovered $441.7 billion from $426.4 billion invested, earning a $15.3 billion profit. So the tax payer did not ultimately. Of course the goal was not to make a profit but to stabilize the economy. Of course small investors lost a bundle but that is how capitalism works.

@victorm.photovic9983 Ай бұрын

If you believe that, I got a bridge I’m trying to sell, cheap.🤣🤣🤣🤣🤣

@danwilson12 Ай бұрын

If someone in your nation has super yacht money and you are still a "developing" nation.... something is wrong

@stupidbro2301 Ай бұрын

That is pretty normal. Even the West in its developing phase had far higher income inequality than now.

@johnyossarian9059 Ай бұрын

South Korea only declared themselves as a developed country in 2019.

@MikeJones-ib8dz 14 күн бұрын

or the leader of the country in luxury watches while the country is starving.

@chewie94116 Ай бұрын

The CEO of Evergrande stole money from home owners to pay for his planes, yachts, soccer team, etc. Death Penalty

@chrisl4999 Ай бұрын

0:38 “Mostly dead but still just a little bit alive” Reference status: Known

@davidtydeman1434 Ай бұрын

The China housing model encourages speculation with finished apartments lacking floor coverings, paint, bathroom fixtures and kitchens so they can’t be rented and just sit there empty hoping for a capital gain profit. This is madness. The government could put a big tax on unoccupied property encouraging investors to rent their properties and address the housing crisis at the same time

@ktktktktktktkt Ай бұрын

Not sure it was a good idea to fine Evergrande. How are they gonna pay the fine when they can't even pay back depositors?

@ceasetheday87 Ай бұрын

I am no lawyer but I assume the legal process proceeding the fine will allow them to pursue executives of Evergrande as well as Evergrande as an entity.

@supernova743 Ай бұрын

The govt gave them money to try to lessen the financial impact. The fine is to make sure they get paid back first before investors.

@samsonsoturian6013 Ай бұрын

The purpose of fines in China is to supplement tax revenue. Bankrupt cities will systematically impound all the scooters on the streets for made up reasons just to hold them for ransom. One city was even caught moving cars with a tow just to give them tickets

@JoelReid Ай бұрын

I believe the fine was given before there was decision to liquidate. This was likely given to make sure that they were not recovering even if not liquidated. China has spent the last 4 years crushing big companies and setting them in their place. The decision to crush this one was handed to them on a platter, and a fine was just a way to make sure it went down easier.

@scottpelletier7095 Ай бұрын

Its a complex issue. I espouse no expertise in what is laughable called Chinese Judiciary but presumable a government fine would make it more complicated for Evergrande to discharge unsecured debts during bankruptcy proceedings. The longer the government can keep Evergrande from legally dissolving the more depositors can wring their money back out of the company via civil suits against complicit executives and stakeholders.

@statmonster Ай бұрын

How do you cover this without mentioning corruption? The delayed bankruptcy allowed the Party insiders to be made whole and get out, leaving the entrepreneur holding the bag.

@dirremoire Ай бұрын

FYI, China has a zero tolerance policy for corruption. Especially for party members.

@David-tt1rb Ай бұрын

The whole thing was about corruption- what do you think fraud is?

@willicat44 29 күн бұрын

@@David-tt1rb Fraud on Evergreen's part,...corrption on the CCP's part. All defrauding the citizens of China & investors.

@sasrrbr0s Ай бұрын

Bro, love your content. Only way I can get through work haha. Always have a video of yours in the background while I’m coding.

@pnwTaco Ай бұрын

Unsustainable growth Unsustainable

@usptact Ай бұрын

“illegal crimes” 😂

@tomlxyz Ай бұрын

You'll get more punishment if the crime you committed is illegal

@jhonatancock2302 Ай бұрын

Chatgpt script

@kyo250996 Ай бұрын

@@tomlxyzalot of words to say "insider trading for congress"

@tomlxyz Ай бұрын

@@kyo250996 Insider trading for congress is actually not a crime

@nehpets216 Ай бұрын

I mean it wasn't illegal until the 3 red lines law was passed. Unethical and risky in the extreme but if the Government doesn't make it illegal someone is going to do it. Later Auditors found other things that were illegal even before the 3 red lines was passed and is when it went from "New Regulations killed them" to "It was Fraud all along"

@zaraustra Ай бұрын

Finally someone is calling it as it is, FRAUD!

@davianoinglesias5030 Ай бұрын

That's how it should be, if bankers mess up don't bail them out no matter how big they are

@hudooguru2 Ай бұрын

Over time WSM has turned into one of my favorite channels. Really enjoy the format and the pacing. Good work and keep it up.

@addict8229 Ай бұрын

This could have mostly avoided if the CCP had better pre sale regulations. Who was the moron who thought it was a good idea to require buyers to pay in full before construction was complete?

@Anti-Ratshield-vel-Antysystem Ай бұрын

Chinese had not many options to invest cash, most stable was real estate, so they pumped it so hard that gone bubble.

@hulahula6182 Ай бұрын

How, China has stock market too

@Anti-Ratshield-vel-Antysystem Ай бұрын

@@hulahula6182 Good luck investing in there 🙂

@habbibiz Ай бұрын

You can indeed claim revenue for ongoing projects, however the contracts need to include specific clauses. And if they do, the calculation is based on the cost occured within the project and is not linked to payments.

@UlyaGaniya Ай бұрын

Gone where? The land the building still there, unlike the great robbery of FTX, SVB and Credit Suisse!!

@chunyuenlau56 Ай бұрын

Your conclusion that greed is the culprit is spot-on. If he had played it conservatively and not leveraged to the max, he would not be in trouble when the CCP introduced the Three Red Lines. And he wouldn't have to subsequently cook the books to save his ass.

@larryfoster8820 Ай бұрын

How much did the Chinese government make after all this

@NorthStarBlue1 Ай бұрын

It's really staggering to think about how much of an impact this is going to have, not just on the financial level but also environmental with the huge amounts of unfinished construction that's just going to be left to collapse and crumble away over the next couple decades. China is going to be literally falling apart at the seams because of Evergrande.

@frankdrake902 Ай бұрын

Always great content.

@otis3744 Ай бұрын

In America, the share holders, bond holders and investors would have been bailed out by a cash injection into EG, in china, the guy on the street gets bailed out

@davianoinglesias5030 Ай бұрын

Now that's true capitalism, failed companies should be let to fail and be replaced by better companies

@newyorkvisionary Ай бұрын

Incorrectly recognizing revenue is a dangerous mistake. Just look how easily this skewed their financial statements..

@Fellowtraveller2 Ай бұрын

I wonder who is holding a large portion of Evergrande paper?

@lokyinphotography Ай бұрын

At least he's jailed compare to those bankers in 2008 just walk away with bonuses lol

@samsonsoturian6013 Ай бұрын

Losing money on pyramid schemes was your own damn fraud

@minakatahizuru Ай бұрын

Governments should not bail companies let them fall.

@wli2718 Ай бұрын

according to Evergrande's 2022 Annual Report, their largest liabilities are: 1. Payable to suppliers $1T yuan - these guys might not be paid in full. it appears only about $600B are actually invoices. $400B is unknown liabilities. 2. Obligation to homebuyers $721B yuan - homebuyers will be made whole by the gov't, as video said. 3. Loans $600B yuan - they probably won't be repaid at all their assets mostly consists of: 1. Properties under development $1.26T - most of this will be given to homebuyers when they are complete. 2. Buildings and equipment $350B 3. Receivables $205B if suppliers have lien protection - like in North America - then they will probably get like 80 cents on the dollar, maybe close to whole. lenders will get nothing, as video suggests.

@hihoktf Ай бұрын

It's not the greed that's the problem. It's the fraud that's committed (admittedly by greedy people) that's the problem.

@garywilliams7086 Ай бұрын

No mention of the flawed population numbers that Evergrande used to justify the amount of buildings. Imagine overestimating your population by 100 million 🤦🏻‍♂️

@arnesahlen2704 Ай бұрын

Big bucks seems to hypnotize even top executives in monitoring agencies. WHY no deeper dive into Evergrande, Enron, Theranos and countless others? When will they learn?

@T4KKFI Ай бұрын

They played their people like a timeshare

@deragoth4250 Ай бұрын

One thing we can sort of be thankful for was that the govt saw the potential problem and took some steps to nip it in the bud earlier. Not perfect but I remember the subprime mortgage crisis. There were some high ranking fed officials voicing concerns but Alan Greenspan said nah, everything is fine.

@outcastmoth78kaminski4 Ай бұрын

Yes... famously honesty Chinese Government is SAYING that they are going to make the little people whole... right...

@BR-hi6yt Ай бұрын

They are not finishing partially built properties, they promised but not happening (no money left)

@michaelmallal9101 Ай бұрын

I would never buy off the plan for obvious reasons. 'Let the buyer beware'.

@davegubbins4428 Ай бұрын

nice that fleeced 'home buyers' are first on the list of creditors to be paid . here in the 'west' the banks get paid well before normal folks who had their life savings stolen, i believe.

@weil9525 Ай бұрын

I am glad to hear that the govt' has stepped in to finish many of the unfinished construction projects. China needs a system change in its rules in presale construction. If I remember correctly, purchasers/investors need to start paying mortgage payments "WHILE" the building is being constructed. This is vastly different than presales in North America where purchasers only pay 10-20% down payment until the project is complete. So the burden is on the developers to finish the project so they can collect the other 80% sales.

@xiphoid2011 Ай бұрын

The government was not "too slow to catch on", the housing bubble is common knowledge, and the government has made several attempts before the 3 red lines. The reason the chinese government never stopped the bubble sooner is because (1) land sale to these developers was a huge part of the government revenue. (2) everyone in the government was getting bribes from the developers to sell them the land. So all the previous attempts weren all half hearted short pauses in the rising housing prices and the bubble just grew bigger and bigger. I remember my dad sold his shanghai flat back in 2007 when the US housing bubble burst. He said the there is no way his investment grew from $300k to over $1 million in 4 years, in a market where the average apartment cost 70 years of average income, wasn't a bubble. But yet, it kept growing for another 13 years.

@jamesecarson5631 Ай бұрын

who are the "bond holders"?

@BWong1234 Ай бұрын

Agree many locals got scammed. But a lot of western capitalists got punished for their insatiable and obscene greed.

@dannylo5875 Ай бұрын

Kaisa is next...there are talks of another big developer hitting the wind-up window

@LordMazafeff Ай бұрын

This can he an existential threat to prc if ordinary home buyers don't get made whole.

@kendalson7100 Ай бұрын

Ooh, the SPAC biz should find Evergrande interesting 😂😂

@him_That_is_me Ай бұрын

The moment they started selling homes to finance building homes they had previously sold it was already a degree too late. You just can't spin cash rhat fast without derailing.

@antonynormand6592 Ай бұрын

Technically prepayment for a unit are taxable and declarable upon reception if a company is reporting on cash basis and not accrual basis. Your description is a bit misleading. However they aren't recorded as sales but as a liability until the unit is delivered.

@supernova743 Ай бұрын

Evergrande took money for projects they hadnt even started. They kept falling further and further behind until they ran out of cash to handle their loans, nevermind actually building the projects they had been paid for.

@janter2247 Ай бұрын

You did not differentiate between the liquidation in Hong Kong vs mainland china. I think it makes a big difference to say, they are liquidating within thing Kong, or liquidating everywhere

@AlanTheBeast100 Ай бұрын

Dealing with Chinese suppliers it's always payment up front and good luck with claims over quality, failures, etc. Here the home buyers took that risk and lost all.

@creepinwhileyousleepin Ай бұрын

7:53 Man.. paying many many times my yearly salary to live up in one of those shit boxes? I think being a poor tea farmer out in the countryside sounds like the better choice.

@Anubis-hm7ro Ай бұрын

Thank you

@DrTune Ай бұрын

$78 billion? That'll buff out.

@sirsyrup3050 Ай бұрын

It is a pervasive fact that nothing lucrative can be avoided. Just ask Gerald in Accounting and he'll explain everything.

@Leosarebetter Ай бұрын

"Leveraged off future customers" - thats about 99% of the property developers worldwide...

@samsonsoturian6013 Ай бұрын

Only the ones committing account fraud. Civilized countries force builders to put the money in escrow

@johnrohlf7902 Ай бұрын

When something seems too good to be true…

@legalcoffee5315 Ай бұрын

It started as kind of a Kickstarter project

@paulblack8887 Ай бұрын

Legal crimes are what you do for the powerful.

@orlandocruzlopez3536 Ай бұрын

Won't that affect other parts of the world economy?

@enigmadrath1780 Ай бұрын

1:13 Please tell me that photo has been meme'd to infinity and beyond in China

@SH-ly1uy Ай бұрын

How do you call prepaid construction in Chinese: Ponzi scheme

@Danji_Coppersmoke Ай бұрын

3:52 "illegal crime" 🤨🤯🥴... so there is a "legal" version of that???

@chevlinpodhorodeski9814 Ай бұрын

"unique form of leverage" it's a pyramid scheme lol

@anthonyrose6686 Ай бұрын

Hey they say if you’re going to steal go big he definitely went big Lolo

@rogerterry5013 Ай бұрын

has this impacted on the China GDP figures?

@arthurgphotography Ай бұрын

"illegal crimes"

@Jager6S Ай бұрын

😂😂😂

@raymondyu7933 Ай бұрын

if you broke enough, you can run as US President candidate of upcoming presidency term and severed as US President

@vanillatornado8390 Ай бұрын

Not all illegal activities are crimes but all crimes are illegal. It's said for emphasis. Not sure what the gotcha moment is supposed to be here. In fact I'd wager that you and most other commentors didn't even know what I just said was true.

@Paetaor Ай бұрын

@@raymondyu7933he was committing the crimes while he was a Senator and as Vice President so it doesn’t count.

@Turbo6019 Ай бұрын

It’s not gone….it was taken by someone.

@michaelsmith4904 Ай бұрын

they can just give it right back then

@samsonsoturian6013 Ай бұрын

It was a ponzi scheme. They were using deposits from new buyers to give houses to old buyers

@JWnFlorida Ай бұрын

Was it fraud or high interest rates and a global slow down? Just asking.. how about a shrinking usd supply??

@mogeking56 Ай бұрын

This guy was buying everything everywhere he burned through cash like crazy

@bobgroves5777 Ай бұрын

Only US$78 Billion?

@samsonsoturian6013 Ай бұрын

That's huge in a country where you can rent a studio apartment for 20 bucks a month.

@orlandocastillo6862 Ай бұрын

Prop for the government for not balling them out, I wish the US government does the same so these companies stop gambling people money

@ryansin9321 Ай бұрын

why did you throw in manhattan chinatown 1:40?

@stc2828 Ай бұрын

Most of the unfinished projects are taken over by the government and will finish eventually. Interestingly, the worst thing buyer can do is to ask for a refund. If you don’t ask for refund it’s very likely you get your property some months or years later, but if you ask for refund you get a IOU from evergrand which probably worth pennies 😂

@supernova743 Ай бұрын

It may be decades before all the projects completed. For some people they wont see either their home or a refund. Given the quality of homes in china theres no guarantee the home will be liveable. In which case its worse than worthless.

@dougsheldon5560 Ай бұрын

Not the kind of chart you want to see, ever.

@blacswanb1273 Ай бұрын

How does this affect Canadian Real estate and American Banks who gave them Loans?

@MidnightIam Ай бұрын

Wait....isn't that just mark to market accounting that has been normal in big business since Enron?

@samsonsoturian6013 Ай бұрын

Only if you're a fraud

@MidnightIam Ай бұрын

@@samsonsoturian6013 exactly. Now see how many companies still do mark-to-market accounting

@lornaj3310 Ай бұрын

Wow we haven't heard anything about these guys for a while...

@HardstylePete Ай бұрын

Good to see no "investment" sponsorships that are just gambling.

@truthseeker261 Ай бұрын

What about the Chinese Ghost Cities?

@kaystephan2610 Ай бұрын

Found this channel a couple days ago and been binging videos of it since.

@philliptemple9841 Ай бұрын

It's mostly factual but mainly for entertainment purposes. Very well written and edited but I wouldn't quote from it unless you want egg on your face. Phillip.

@gund89123 Ай бұрын

Chinese government has to take some of this blame. To increase GDP they incentivized builders to build more homes.

@Paetaor Ай бұрын

More than some.

@Tuppoo94 Ай бұрын

The Chinese government is officially infallible, so it mainly exists to take credit for others' success and to blame others for its own failures.

@navneetsinghrol9914 Ай бұрын

But hey WSM, isn't it the norm in China to pay up front front for properties (estate) and then the builder delivers over lets say a year or two? ALOT of those builders defaulted. This was infact one of then dominoes that has effectively led to collapse of China's economy.

@flyboyone Ай бұрын

The current issues with China's property developers is because of poor Government Regulations. In Australia, all purchaser's deposits are held in the purchaser's lawyer's Trust Account and only realised to the developer when the developer receives a Government Occupation Certificate to show the apartment is properly completed and suitable for occupation. Evergrande and all other PRC developers have simply just taken advantage of poor quality Chinese Government legislation. The CCP needs to change the Pre Sale/Off the Plan regulations to protect the purchasers and not allow developers to basically "steal" deposits and use them for completely unrelated purpose, like buy a big Gulfstream or a 300 foot long private boat!