In this Video, we discuss how According to Cathie Wood, China Has Already Crashed. Were You Aware?

China's economy is about to face the largest collapse in history, with decades of recovery ahead. China's imminent market crash will be similar to Japan's terrible market crisis in the 1990s, which saw the country's stock market drop by 80%. Japan's stock market has yet to recover from its highs, despite the fact that it has been three decades since the market meltdown. The market meltdown in Japan was precipitated by a series of circumstances that ultimately led to the country's demise. Several indicators, similar to those in Japan, indicate that China's economy has already imploded, but you aren't aware of it. This video will explain why Cathie Wood believes China has inflated a big market bubble and is set to see the world's largest crash.
The steady growth in Chinese property prices show that China's housing market has risen tremendously over the last decade. The Chinese real estate bubble, unbeknownst to the majority of investors, is poised to burst in a big way. Before we get into the indications, let's take a look at how China in 2021 and Japan in the 1990s are very similar. Chinese real estate developers have leveraged up in order to rapidly increase their real estate portfolios over the last two decades. On the surface, this appears to be a good thing, but it also indicates that the market is quite vulnerable in the future. This has already happened with Evergrande, the world's most indebted real estate developer, which has defaulted on its debt obligations. This alarming pattern can also be seen in other Chinese real estate firms. At least four more prominent Chinese developers have lately gone bankrupt or sought for more time to repay their debts. Fantasia Holdings, Modern Land, China Properties, and Xinyuan Real Estate are among the companies that have failed to pay debts totaling hundreds of millions of dollars. During the Chinese bull market, real estate developers took out nearly $5 trillion in debt, according to economists at Nomura Holdings. When a market has that much leverage, a market crash is almost unavoidable, as it was in Japan in the 1990s. From 1990 to 2003, Japan's Nikkei index fell by more than 80% from its all-time highs, and it has yet to regain those levels. The lost decades refers to the fact that investors in the Nikkei Index at its height would still be down around 25% after more than 30 years. Imagine investing in the S&P 500 and losing 25% of your money after 30 years. A disastrous collapse in China would harm not only Chinese residents, but the entire world economy.
So, what's the big deal about all of this? According to Moody's, a credit rating agency, real estate accounts for 70 to 80 percent of China's household wealth. If the real estate market crashes by 80%, as it happened in Japan, the entire global economy will come to a halt. Practically every item is manufactured in China, and almost every country relies on it. A global downturn in spending would be triggered by a dramatic slowdown in the Chinese economy caused by a real estate catastrophe. This disaster might occur as early as January 2022, just a few months away. Over $6 billion in real estate development debt is due in January 2022, according to Goldman Sachs. This is a significant rise from November's developer debt payments of less than $2 billion. Several Chinese real estate development enterprises are already defaulting on their debts, but just picture what could happen in the coming months when repayments skyrocket. The Chinese communist party's attempt to crack down on speculative and unlawful real estate deals is another downward factor for the country. The CCP is now enacting tough controls on real estate businesses in order to offer residents with greater equality. On the surface, this seems reasonable, but Cathie Wood argues that such behaviors are akin to playing with fire. People who play with fire eventually get burned.
In earlier videos, I've discussed how the commodity market is heavily reliant on China. China's demand for commodities accounts for 15% of global GDP, and a number of commodities are nearly entirely dependent on China. Iron and copper are two of these commodities that are currently dropping at extraordinarily high rates.

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