News for hackers. Stuff that matters.
Re:What Does Evergrande Meltdown Mean for China? by onlyrealcuzzo on Thursday September 23, 2021 @01:40PM (#28632461)
Chinese people only save to buy houses on debt with 5:1 leverage.

The difference is there investments are all leveraged, whereas Westerners have a larger share of investments that are in equities with no leverage.

It's easy to have a lot of "savings" when 100% of your investments on 5:1 leverage are appreciating at 7%+ per year for 2 decades.

It's also easier to get that much appreciation when it's all debt fueled and on leverage.

There are no comments on this comment yet.