More Evergrande Shenanigans


For those who aren't aware, Evergrande are into more than just property. They are also big on wealth management products and that was an area that gave them quite a bit of problems.

But I just wanted to highlight how crappy the economic system is if this sort of shenanigans go unpunished. The thing that textbooks get wrong is that it expects rational behavior and rational rewards and punishments.

The real world is a lot more grey and people don't always act the way they should nor do companies or countries. Anyway, if there's a lesson for all of us in this debacle, it is to borrow till you're drowning in debt and don't pay up while funneling your proceeds offshore out of the reach of your creditors.

While the company won't default, I would stay away from investing anything in them given how unethical they have acted. Not even treating your own employees right, let alone investors. What a shameful organization.

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