“It would be inappropriate for the central government to directly provide fiscal support, as it could lead to expectation of future government bail-out and therefore moral hazards,” Zhang said.

Ouch, no handouts for the financial bros…😂

  • ☭ Comrade Pup Ivy 🇨🇺@lemmygrad.ml
    0·
    3 months ago

    What needs rescued in China, I feel like the article is missing some context and is starting with the assumption that everyone just knows china needs to bail things out.

    Am I just this out of the loop?

    • davel@lemmygrad.mlEnglish
      0·
      3 months ago

      The context is that the West doesn’t know how any of this works. You’re not the one who’s confused.

      • loathsome dongeater@lemmygrad.mlEnglish
        0·
        3 months ago

        They know how it works it’s just that their goals are antagonistic with the evil CCP’s. The IMF, which is gravely concerned about China and the Chinese, wants houses to be speculative assets so that they are overpriced and there are a ton of homeless people a la USA.

        • davel@lemmygrad.mlEnglish
          0·
          3 months ago

          That’s of course what they wanted: to neoliberalize China. And the fact that they thought they might get it is funny.

    • SadArtemis🏳️‍⚧️@lemmygrad.ml
      0·
      3 months ago

      China’s undergoing a (controlled) demolition of its real estate speculation market, returning it back to being an industry and foundation for the people, rather than finance. All the developments are still there, and the actual industry (not speculators, actual productive capabilities) will remain as well, and unlike in the west there’s no mass evictions and impoverishment of the people, either.

      Naturally, the west thinks this is a bad thing and a sign of collapse…