Greek crisis is nothing compared to China

[dray]

bloated real estate sector? lol... you're good at throwing around buzzwords, but not much else. The real estate sector is almost completely insulated from the stock market, in fact, because there is little leverage in the real estate sector. Down payments are in the 20-50% range, as opposed to 0% in the 2008 crisis.

I didn't allow you to make personal comments on me. Keep the discussion clean.

And 20% downpayment is not much of a hedge against a Chinese version of sub-prime crisis, not even 50% if the property price falls more than 50%. And the bank needs to find a new buyer also to recover the debt.
The bigger problem is the debt taken by the builders, a major property price crash along with large inventory of unsold properties can bring them down to their knees, along with the banks who financed them. This equity market crash has made the situation a bit more gloomy by wiping off some more liquidity from the economy. It doesn't matter if individual investors are a small part of it, even corporates losing money is not a good news, especially for an economic that is showing the signs of slowing down.

 

[Nicky G]

First hand, I have knowledge from my prior work in banks where I was looking into distressed assets of marquee real estates companies in India.

For the rest, I based my comments on the below article

The ever expanding debt bubbles of China and India | Business Line

You seem to have ignored the points I made and the points in the article - which beyond actual debt exposure numbers are pure speculation seem to have been dealt with.

Anyway, the fun in China is just starting, lets wait and watch.

 

[Spectre]

You seem to have ignored the points I made and the points in the article - which beyond actual debt exposure numbers are pure speculation seem to have been dealt with.

Anyway, the fun in China is just starting, lets wait and watch.

I didn't debate the points you raised because I found them to be credible and had no counter. I just offered justification for my views. Regarding China, the opacity of their economy and their tendency to present a glossy shine on their numbers makes it very difficult for me to offer hard arguments on their behalf.

Yup, Let's talk about it after a while and see how this has revised China's growth outlook.