The question is then whether they actually have enough assets to pay their debts.
Real estate giant China Evergrande will be liquidated
31–40 of 364 posts
Re: Real estate giant China Evergrande will be liquidated
#32Earlier quoted context omitted.
What's the mechanism?
It was suspected that a lot of USDT is backed by Evergrande notes, though they have denied it. Evergrande liquidation may cause a USDT liquidation and cause USDT to lose peg. There are often idiots that will drag the rest of crypto including bitcoin with it, though.
That kind of thing has usually had the opposite effect.
If USDT is worthless then you want to sell it, causing the price of Bitcoin to rise on those exchanges.
Re: Real estate giant China Evergrande will be liquidated
#33The question is then whether they actually have enough assets to pay their debts.
Ooh! I got this one. They do not.
Re: Real estate giant China Evergrande will be liquidated
#34Earlier quoted context omitted.
It was suspected that a lot of USDT is backed by Evergrande notes, though they have denied it. Evergrande liquidation may cause a USDT liquidation and cause USDT to lose peg. There are often idiots that will drag the rest of crypto including bitcoin with it, though.
That kind of thing has usually had the opposite effect. If USDT is worthless then you want to sell it, causing the price of Bitcoin to rise on those exchanges.
If you sell it for BTC, yes, though it's more likely people will get spooked of crypto and sell it for USD.
Re: Real estate giant China Evergrande will be liquidated
#35The question is then whether they actually have enough assets to pay their debts.
Ooh! I got this one. They do not.
The bigger question is if China is going to prioritize local debt holders over overseas debt holder (everyone should take a massive haircut though), and what happens to the apartments they've sold but not built yet (since Chinese banks have lent money to people to buy those).
Re: Real estate giant China Evergrande will be liquidated
#36Re: Real estate giant China Evergrande will be liquidated
#37This is only the Hong Kong business.
Which is why it hasn't had the impact you would expect.
Re: Real estate giant China Evergrande will be liquidated
#38Earlier quoted context omitted.
Jim Chanos?
No, Andrew Left. See https://en.wikipedia.org/wiki/Andrew_Left#:~:text=In%202016%... and https://markets.businessinsider.com/news/stocks/andrew-left-... Basically, the Hong Kong stock exchange is increasingly a scam as well.
> “The finest line of poetry ever uttered in the history of this whole damn country was said by Canada Bill Jones in 1853, in Baton Rouge, while he was being robbed blind in a crooked game of faro. George Devol, who was, like Canada Bill, not a man who was averse to fleecing the odd sucker, drew Bill aside and asked him if he couldn't see that the game was crooked. And Canada Bill sighed, and shrugged his shoulders, and said, 'I know. But it's the only game in town.' And he went back to the game.” — Neil Gaiman
Re: Real estate giant China Evergrande will be liquidated
#39This is only the Hong Kong business. Which is why it hasn't had the impact you would expect.
What is the expected impact? And for whom?
Re: Real estate giant China Evergrande will be liquidated
#40Earlier quoted context omitted.
That kind of thing has usually had the opposite effect. If USDT is worthless then you want to sell it, causing the price of Bitcoin to rise on those exchanges.
If you sell it for BTC, yes, though it's more likely people will get spooked of crypto and sell it for USD.
If USDT can no longer be redeemed for USD, then people may buy BTC instead?