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Joined 3 years ago
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Cake day: July 2nd, 2023

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  • 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.