China Real estate companies collapse is eye opener that excess investments by taking debt in bubble industries can be risky

China Real estate companies collapse is eye opener that excess investments by taking debt in bubble industries can be risky.

China Real estate companies like Evergrande do not have definite plan related to how to clear loans. This made the company to go bankrupt.

Similarly many countries are taking debt in huge level. Do they have plan how to clear debt? What happens if any developed Government starts to default loans?

One of the biggest China real estate company went bankrupt. Many mid sized and small sized real estate companies also went bankrupt in China.

Evergrande company owner Hue and his family took more than 7 billion USD in the form of dividends.

Can anyone imagine a company which paid billions of USD in form of dividends can go bankrupt?

Evergrande story telling it is possible.

Actually why this is more important to study now is national debts of many countries are soaring.

Growing debts of countries can cause issues when countries are not able to pay debt.