The article can be found here.
This article talks about how one real estate business has declared that they will not be able to pay back their debts and will be going bankrupt. This is not good news for the economy. It shows that companies not only can go back on these promises, but that the market is not good enough to stimulate the homes that they are selling. Hopefully other businesses will be smarter in how they borrow and spend money so that the market can continue to improve.
I think that it is a very interesting concept, going bankrupt. You just say, "Sorry, I can't pay my debts! I guess I'll just . . . not do it!" I think that if you get in debt, somebody has to pay it, and the government most certainly is not in a position to do so. Also, I think that China's economy needs all of the help that it can get. I hope that they continue to go more and more towards capitalism, and to let their economy grow. That is so important for countries to do, because in the world today, money is a huge driving force. This growth is important for the development of their country, and it will be interesting to see how they react to losses such as this and pressures for a more open market.
I like your take on bankruptcy. I think that it is being used more and more and is becoming a safety net for uncontrolled spending.
ReplyDeleteI just want to know, who do you want to pay it if the government can't?
ReplyDelete