• eestileib@lemmy.blahaj.zone
    link
    fedilink
    arrow-up
    1
    arrow-down
    2
    ·
    17 hours ago

    I used to own a house free and clear. If the value dropped by half, I would still feel a lot poorer.

    When the price of assets held as a store of value drops, the holders of those assets are impoverished. That’s already bad.

    Now, when a fall in the price of assets held as a store of value drops, and that triggers a series of defaults that ripples across the financial system, that’s even worse.

    I can’t see from the outside the degree to which Chinese society has been financialized, but I’m betting it’s more than the CCP wants to let on.

    • ☆ Yσɠƚԋσʂ ☆@lemmy.mlOP
      link
      fedilink
      arrow-up
      6
      ·
      16 hours ago

      I mean, literally the first link in my reply is saying that household savings in China are at record high levels. 🤷

      When the cost of hosing, the basic necessity for living, drops that is in fact a very good thing. And the record high savings number clearly demonstrates that housing is not a primary investment vehicle for majority of the population. As Xi put it, hosing is for living. This was an intentional policy choice and a correct one.

      If you think that Chinese society has been financialized then you’re utterly clueless on the subject and have no business discussing it.