• Linkerbaan@lemmy.world
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    8 months ago

    No all of that is included because Evergrande is a ponzi scheme. They can undercut their competition by selling houses for such a low price that they can’t build them.

    So they run on people pouring more and more money in and putting more and more projects on hold. That’s a ponzi scheme.

    Building houses doesn’t have to be a ponzi scheme. Evergrande is.

    • Kusimulkku@lemm.ee
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      8 months ago

      Evergrande operates in the same sector and is a big player there. I won’t shed a tear for them. What I’m saying is that hopefully them going down won’t take anyone else with them and cause havoc on the whole sector.

      • Linkerbaan@lemmy.world
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        8 months ago

        It will because now there will be a mass sale. Also China’s only means of investment being houses instead of the stock market did help Evergrande pump up their bubble quite a bit.

        The Evergrande director will take his golden parachute, many poorer Chinese people will be left scammed, with nothing.