So you invested in china. Whoopti do congratulations now. What do you do? Well, in case you've been living under iraq? Evergrande is collapsing, the chinese markets are going berserk and now the u.s markets have joined the party. The s p 500 is down.

The dow is down volunteer is down, everything is down, tesla is down you name it. I can't think of a single green stock. Today. Now the question is beyond my original video about evergrand how much of an impact this whole implosion of evergrand is going to have on the u.s market.

Now, as always in my videos, the bottom line comes first, i don't want to hold you hostage so in this video. I want to explain to you why this will have literally no negative effects on the u.s market. Now you may have noticed, i said no negative effects, i didn't say no effect. In fact, i think there's going to be a positive effect on the u.s market because of this collapse, and this whole thing is just an overreaction.

Now, if that's all you needed go load up on whatever you use, you need to load up, and you know i'm fine with it. You don't have to stay for the video, but if you want to hear why you know you're more than welcome to stay grab a beer grab, a coffee grab a handkerchief, it's been a tough day, grab a vodka who knows at this point and let's get started So, first of all, before we get started, my name is tom. If this is your first time here, i used to be a senior financial analyst. Now i'm a full-time youtuber, and i ask if you have one thing: don't click, nothing, don't smash, nothing don't buy nothing.

I have no courses, no sponsorships. The only thing i ask for is just your attention because in this video i'll explain to you why this whole ever grand implosion is a chinese problem. It has literally no way to cause any real damage to the u.s markets. In fact, i think it's going to help the us market so if you're ready, let's get this ball rolling.

So, first of all, the question is what the hell is going on and, of course i don't want to bore you with stuff. You already heard about so in just a two sentence: paragraph i'm going to recap this whole ever grant situation up to this point. Now. First of all, evergrant is a chinese company.

They do a lot of stuff employ about 200 000 employees and among other stuff they do real estate development, wealth management products. They pretty much. Do you know the jack of all trades jack of all trades. You got it in any case, so evergrand has a massive debt, 305 billion dollars in debt, but they also have a lot of assets and to this point this wasn't a problem.

I mean it's a high leverage business if you're, basically building apartments, car parks, offices, construction requires a lot of capital and it's not unusual to see construction companies and real estate development companies take a lot of leverage a lot of debt. However, as we just found out, the assets that are being held by everground are pretty much useless. Nobody wants them and it's not really ever grant's fault. The problem is that the whole chinese market has gone through a massive spurt of growth.

They built a lot of houses, a lot of apartments, a lot of offices, a lot of trains that are literally going nowhere, and now we have ghost cities in china, go check it out; cities that has everything, infrastructure, roads, schools, buildings and yet not a single resident, Because they're not needed so this whole chinese real estate market has basically imploded because at some point there's got to be an end to this nonsense. And now it is, and evergreen is just one of many chinese companies that will feel the effect of the implosion of the chinese real estate market. Now, that's not even the biggest problem of china, because the demographic crisis, aging population and all that good stuff, they're just trying to keep the lights on at this point, so the whole narrative of china taking over. I feel it's kind of laughable and shout out to my friend daniel.

We spoke about it on our podcast a couple of months ago. Apparently, this is exactly what's going on right now, so the question is right now that every grand is collapsing, we're seeing what's going on today in the u.s, everything is down. So the question is: is this an overreaction or is this the next lehman brothers? Is this company, the final straw, that's going to collapse, the entire global economy, the u.s economy, what the hell is going on. So let me answer briefly, as i already did: no, it is not so it is strictly a chinese real estate market problem.

That needs to be addressed in china. It has nothing to do with the us. Obviously, some u.s banks, i think quite a lot. We just saw a lot of u.s bankers travel to china recently in the last few days, they do have money with evergrand it's inevitable, but is this a global systemic risk? Not really it's a chinese real estate problem that has no actual global impact about the u.s economy or the global economy.

It's completely kind of quarantined in china. The question is: what happens next? How does this thing play out and check this out? This is just my theory, my opinion might be, inaccurate might be wrong, might be the ramblings of a madman, but this is how i see it play out. You can play out your own scenarios, i mean within the boundaries of reason and law. So this is what i think is going to happen right now.

The chinese government basically is dealing with the problem. They got to figure out a way to bail out this company without making it look like they're bailing them out, because they have a real pr issue. It's like the communist, endorsing socialism or wait. The communists didn't know socialism, i guess the communists endorsing uh capitalism.

I for some reason i had a freudian problem to say the word: capitalism. Maybe it's because of the shirt. I don't know why. But it's like you know the communist, the head communist chief honcho, coming out and saying well, capitalism is good.

That is the equivalent of the now mao is resuming china right now, bailing out some rich bankers because they guided themselves into the situation. So they got to find a quiet way to do it, and i think they'll do it indirectly, through the banks and they're, going to push the banks pressure, the banks give them some carrots give them. Some sticks essentially to allow this to play out slowly to get every ground out of this mud. They might or might not screw the western money here, because they do owe a lot of money in the western countries, including the us, and that may be a good way to shaft all these western companies and banks, which the chinese government loves, doing, don't know if They do it or if they, you know, or they take care of the entire situation in the hall, but in all honesty it doesn't even matter even if china decides to screw around and basically let the westerners take the dump and not repay the westerners.

It's going to be anything but a systemic global fail. It's going to be a little bit of a turbulence in the plane boom, not a crash now. Here's what i think actually happens next check this out. So the first thing we're going to see and we already started seeing it is a little correction in the market which was due.

I think things were getting hotter and hotter frothier and farther, so this correction actually comes in time and it's healthy for the market. So the correction is here to stay. I don't think it's gon na go balancing up tomorrow, but it's just a correction and eventually it's gon na even out do we have a bear market scenario, a crash? No, i don't think so, but evergren is also going to feel the pain, especially evergren's management. I think heads will roll.

I mean every single member of management is going to feel the pain they're going to get fired. I hope for them and nothing worse than that, but i think beyond evergrand, whether china bails out this company or not we're going to see a massive slowdown in the chinese economy for the next year year and a half and that's why. I think the next year year and a half in china are going to be challenging. The economy is going to take a hit.

It's going to slow down, not to screeching hold, but significantly. So if this wasn't enough for you to get out of china, i don't know what is, but if you've been watching my channel, i mean i've been preaching about it for six months, maybe even a year about having really solid reasons not to be in chinese stocks. Even before the evergrand stories, if you chose to stay and buy that dip good for you now, you have to make a decision and a tougher decision that you had to make a year ago again, even without this evergrand story, there's plenty good reasons not to get Into chinese talks now, how does this even benefit the u.s right now the u.s markets are crashing. How the hell do you think it's going to benefit the u.s dome you're, probably crazy, well check this out.

You have to understand that there's going to be a lot of people sobering up from this chinese hangover because of evergrand exposing the structural issues with china, the real estate market, the demographic problems. I think that after this whole thing blows over and the u.s market goes back up, which it will it's just a minor correction. You're gon na have a lot of money flowing from chinese companies a lot of investment money, a lot of institutional money, because the banks just saw what just happened. A lot of money will flow from china back into u.s companies and the u.s stock market and the u.s economy.

So on the long term basis, if you look at a six months to a year basis, china is basically imploding in this whole. Evergreen story is going to benefit u.s stocks and that's why i think that this story specifically is not going to cause any massive global crashes. If anything, it's going to help the us by flowing money or reflowing money from china back into the u.s, but then again i've been wrong before just a youtuber, another financial advisor you got to do in research. I think that that's exactly what's going to happen.

Let's talk in six months or a year and let's see if i was right, but i got ta be honest with you, my track record about china ain't that bad go! Look at some of my older videos warning you about this and, as always a huge shout out to the channel members and the patrons for sticking with us, allowing me to make this sort of content instead of the clickbaity stuff. Today i mean i've been dabbling in it before i'm, not gon na lie, but making these sort of videos with actual value no clickbait, even if it takes a hit in the views. Thank you channel members. Thank you patrons for allowing me to get off the clickbait train, i'm gon na admit.

I was a little bit clickbaity lately, but i think now we're back on track and we're actually going to provide value with the support of our almost 4 000 patrons and almost 1 000 channel members we're good to go we're free of the shackles of clickbait. Thank you for joining me i'll, see you tomorrow.