Evergrande—the second-largest real estate developer in China—is causing so much trouble for the Chinese regime, and its presence in the economy could also affect U.S. investors.
Will it cause a global ripple through the interconnected financial system? The Chinese communist regime must decide if they want to bear the heavy weight of $300 billion in debt, or leave Evergrande to fail. But what about social stability from the aftermath of Evergrande going down? The real estate giant in China may cause a domino effect, bringing the entire housing market in China down with them. Will Beijing let that happen?
I speak with economist and author Milton Ezrati to find out from industry experience how to understand Evergrande and how control and stability play a central role in the decision-making process.