Evergrande China may not be that Grand after all
In 2012 there were numerous empty apartment buildings in many of the burgeoning Chinese cities leading some experts predicting a collapse of the housing market bubble in China. But, it did not happen! This past week, news shaking the stock markets was from the biggest builder in China, Evergrande, that it was about to default in its liabilities and on Thursday the deadline to avoid default passed without any effect to the world stock markets, on the contrary, the markets went up! One wonders why and what's all this about. The only explanation for all what seems to happen in China is to be taken with an awareness that China is a very difficult economy to predict with clarity as the numbers available to compute data analyses are generally opaque. The sum of its parts even more difficult to predict. Evergrande, may just be the tip of an iceberg that may involve more than a big chunk of ice.