taking my shenzhen-based reflexologist as single-data-point example, and my friend's shanghai-based assistant as another example, and noting that there be primary loan for home purchase but no re-financing in action, when folks buy a new apartment, loan amount goes up, but the rate of rise for apartments in tier 1, 2, 3 cities for the most part are of merit, and the loan to value ratio is well within reason
so when folks speak of loans / debt in china, they ought to consider the asset side of the balance sheet
personally i have no mortgage loans outstanding and am not inclined to borrow
i do occasionally use massive leverage, but over very short periods (a few weeks), and if absolutely necessary can pay off the leverage w/o disposals; leveraging for effect and convenience as opposed to for necessity. i believe there are many same same.
are there folks ('entrepreneurs') in china using massive leverage systemically? of course yes. they will likely blow up, for the greater good, and be sent to jail, for all good.
does it make sense to borrow? probably. because the printing shall continue, massively, and systemically.
issue be borrowing for what.
all per inflation of the east. hiccups? sure. blowups? possibly. toxic? not really. fatal? hardly. |
