Patreon Preview – 104. The Collapse of Evergrande

To quote the headline for Ed’s article, “Ok, what the fuck is Evergrande and is it going to blow up the global economy?” First question: Evergrande is the second largest real estate developer in China. Its business model is premised on infinite growth, it’s massively indebted to everybody, and it is finally collapsing. Second question: Maybe! We lay out the dynamics leading up to, and unfolding now during, Evergrande’s collapse and discuss the potential consequences of yet another “too big to fail” financial institution doing what they do best: failing. Some stuff we reference: • OK, WTF Is Evergrande and Is It Going to Blow Up the Global Economy? | https://www.vice.com/en/article/wx5mqm/ok-wtf-is-evergrande-and-is-it-going-to-blow-up-the-global-economy • Citron Research / Andrew Left 2012 short seller report on Evergrande | https://www.slideshare.net/dingli8888/citron-research • Evergrande Gave Workers a Choice: Loan Us Cash or Lose Your Bonus | https://www.nytimes.com/2021/09/19/business/china-evergrande-debt-protests.html • Evergrande used retail financial investments to plug funding gaps | https://www.ft.com/content/0b03d4de-1662-4d30-bcfd-c9bae24fa9cc • China’s Nightmare Evergrande Scenario Is an Uncontrolled Crash | https://www.bloomberg.com/news/articles/2021-09-16/china-s-nightmare-evergrande-scenario-is-an-uncontrolled-crash • The Asset Economy: Property Ownership and the New Logic of Inequality | Lisa Adkins, Melinda Cooper, Martijn Konings https://au1lib.org/book/14728397/9acae0 Subscribe to hear more analysis and commentary in our premium episodes every week! patreon.com/thismachinekills Grab your TMK gear: bonfire.com/store/this-machine-kills-podcast/ Hosted by Jathan Sadowski (twitter.com/jathansadowski) and Edward Ongweso Jr. (twitter.com/bigblackjacobin). Production / Music by Jereme Brown (twitter.com/braunestahl)