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China’s economy is about to experience the biggest crash in history that will take decades to recover from. China’s impending crash will be similar to Japan’s devastating 80% market crash in the 1990s. Even after three decades of the Japanese market crash, Japan’s stock market has still not recovered from its highs. Japan’s market crash culminated from specific events that caused the country’s eventual fate. Just like Japan, several signals are showing that China’s economy already crashed, but you just don’t know it yet. This video will go in-depth on why Cathie Wood believes China has fueled up a major bubble and is about to undergo the largest crash in history.
China’s housing market has inflated significantly over the past decade, which is demonstrated by the consistent increases in Chinese housing prices. Unbeknownst to the majority of investors, the Chinese real estate bubble is about to pop in a serious manner. Before we get into the indicators, we have to address the striking similarity between China in 2021 and Japan in the 1990s. Over the past two decades, Chinese real estate developers have leveraged up in order to quickly expand their real estate portfolios. This sounds great on the surface, but it also means that the market has extreme fragility going forward. We’ve seen this happen with Evergrande, the most indebted real estate developer in the world, which has failed to pay off its debt payments. This frightening pattern is evident with other Chinese real estate companies as well. At least four other major Chinese developers have recently defaulted or asked investors to wait longer to repay their debt. This includes Fantasia Holdings, Modern Land, China Properties, and Xinyuan Real Estate, all of which are failing to pay hundreds of millions of dollars worth of debt. According to economists at Nomura Holdings, real estate developers took out over $5 trillion worth of debt during the Chinese bull run. When so much leverage is in a market, a market crash is almost inevitable, just like Japan in the 1990s. From 1990 to 2003, Japan’s Nikkei index crashed over 80% from its record highs, and even today the index has not returned to those levels. This disaster is known as the lost decades, because investors in the Nikkei Index at the peak would still be down roughly 25% after over 30 years. Imagine investing in the S&P 500 and still being down 25% after 30 years. China suffering a collapse that destructive would not just affect Chinese citizens, but also the entire global economy.
So why is this all important? According to Moody’s, which is a credit analyzer, approximately 70 to 80% of China’s household wealth is tied up in real estate. If the real estate market crashes 80% like Japan’s market did, then the entire global economy would freeze. Every country depends on China for its manufacturing of almost every single good. A sudden slowdown from the Chinese economy instigated by a real estate crash would slow down consumption worldwide. This crash may happen as soon as January 2022, which is only a few months away. Goldman Sachs found out that over $6 billion of real estate development debt is due in January 2022. That is a substantial increase from the current developer debt payments of less than $2 billion in November. Several Chinese real estate development companies are already failing to repay their debt, but imagine what will happen in the coming months when repayments explode. Another downward catalyst for China is the Chinese communist party’s attempt to crack down on speculative and illegal real estate deals. The CCP is currently initiating strict regulations on real estate companies to provide more equality to citizens. This sounds logical on the surface, but Cathie Wood believes that such actions are equivalent to playing with fire. When people play with fire, they eventually get burnt.
I’ve talked about in previous videos how the commodity market is extremely dependent on China. China’s demand for commodities represents 15% of the entire global GDP, and countless commodities almost solely depend on China alone. Among these commodities are iron and copper, which are currently crashing at incredibly fast rates right now.

By Stock Chat

where the coffee is hot and so is the chat

24 thoughts on “Cathie wood: china already crashed you just don’t know it yet”
  1. Avataaar/Circle Created with python_avatars Tiziano Niero says:

    You literally. All for a market crash every week. Eventually you’ll be right.

  2. Avataaar/Circle Created with python_avatars V says:

    Just a few months ago this channel touted how fast China was growing. And how it was going to be the strongest economy in the world.

  3. Avataaar/Circle Created with python_avatars Charles Glover says:

    Yeah, but what about the fact that 6 of the top 10 global shipping companies are from China? Japan has 3 of the top 10 shipping companies, and Europe has 1 of the top 10… You know how much we rely on china for shipped goods? If china's economy falls, roughly 60% of goods shipped from China will grind to a halt… And food for thought; over 50% of our produce and food gets shipped in on those boats… We don't grow enough food to be self sustaining in the United States… I think we only grow about 40% of our own produce and meat. That's a lot of hungry mother fuckers.

  4. Avataaar/Circle Created with python_avatars D Legionnaire says:

    Former FRENCH FOREIGN LEGION ex 2 REP Sniper in the Brutal Bloody Head crushing hyper violent Martial Arts action film THE MERCENARY now on Amazon prime ………

  5. Avataaar/Circle Created with python_avatars dave white says:

    Well it looks like Cathie Wood has finally got something right. This is probably one of the reasons that she and Musk are selling their Tesla stock now. They know the collapse is coming.

  6. Avataaar/Circle Created with python_avatars Dude inshore fishing says:

    How bad can things really be? Most everything is produced in China? Wealth comes from producing? Or does Wealth come from consuming?

  7. Avataaar/Circle Created with python_avatars Douglas Nelson says:

    She will destroy all lost in. mammons world gawd gad gaad god..
    The arc. Of. Whose. She used..lavishly babelons queen of THE WORLDS SYSTEMS
    Your trust in. MAMMON. AND WOMAN

  8. Avataaar/Circle Created with python_avatars Paul Dionne says:

    That this correct Ms Wood thee 80% will fall back into there wallets of prophets pretty cool right

  9. Avataaar/Circle Created with python_avatars Ian Gaskin says:

    New Zealand has coal and ironsands reserves we will never need or use, we should give them to China, that could lift 100 million out of poverty

  10. Avataaar/Circle Created with python_avatars freedomXforce says:

    She doesn't think china is trying to be a new age robinhood. They will make everyone poor. They won't give anything they steal from the rich to the poor.

  11. Avataaar/Circle Created with python_avatars Justice Erick says:

    <If there is one thing I have learned in recent months it is to remain calm, especially when it comes to investments in cryptocurrencies. Learn not to sell in a panic when everything goes down and not to buy in euphoria when everything goes up. I advise y'all to forget predictions and start making a good profit now because future valuations are all speculations and guesses. The market is very unstable and you can not tell if it's going bearish or bullish. While myself and others are trad! N without fear of making a loss others are being patient for the price to skyrocket. It all depends on the pattern you follow. I was able to make 31.5BTC from 10.4 BTC in just August from implementing trades with tips and info from Justin Lawrence

  12. Avataaar/Circle Created with python_avatars Avery Thompkins says:

    GOD Loved you enough to send His Son JESUS for you and if you will believe in Him and turn from your sins you will be saved

  13. Avataaar/Circle Created with python_avatars Running Panda says:

    I think Cathie is right about the current Chinese realestate market, but I believe the even bigger problem China suffering is birth rate…..check the figures..

  14. Avataaar/Circle Created with python_avatars fast eddy1990 says:

    Interesting . If china crash a lot of real estate in the west will follow ?? Lots of Chinese investors in large western cities

  15. Avataaar/Circle Created with python_avatars Gerald Austin says:

    Mr. Franklin has been managing my trade for months and I keep making profit every week. I made "$17,240 last week also

  16. Avataaar/Circle Created with python_avatars Kexin says:

    I’m still waiting for a crash prediction that is actually right. So far these predictions are one in a million. I’m far more likely to see the return of Jesus than a crash theory that is actually on point.

  17. Avataaar/Circle Created with python_avatars Vernon Decker says:

    No the American economy is in shambles because of American economic policy.
    But those in power always lie and blame everyone else for what they have done.

  18. Avataaar/Circle Created with python_avatars Metro Trujillo says:

    wrong, there are 800 million people who are poor, that is not what japan had during that time, in %.
    china has room to go for at least 20 more years.
    do not measure china as a market economy, is not, and the state will dump unlimited money as it needs.

  19. Avataaar/Circle Created with python_avatars Jackob32 says:

    The China Real Estate bubble is small and the Real Estate bubble poping is already counted in the china stock market

  20. Avataaar/Circle Created with python_avatars Trust Me says:

    If China see a recession or a economic downturn. The United States will see a bubble dip recession accompanied with hyperinflation.

  21. Avataaar/Circle Created with python_avatars Christopher Cardono says:

    Please types all your videos in closed captions for the deaf and the hard of hearing, We are investors too .

  22. Avataaar/Circle Created with python_avatars Kaczynski XXI says:

    if we listen to everytime china '' sure crash'' or ''sure will crash'' …

  23. Avataaar/Circle Created with python_avatars Andrew Dobbin says:

    I do know china crashed. there's just nothing I can do about it. I'm not a billionaire.

  24. Avataaar/Circle Created with python_avatars Josh Storm says:

    Retail investors in 2020: Cathie Wood is a genius!
    Retail investors in 2021: Cathie Wood is a moron!
    Retail Investors in 2022: Cathie Wood is a genius! I wish I would have bought at the end of 2021!

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