China's "pawn shops" have loaned $43B, mostly secured by real-estate

#1

Originally published at: https://boingboing.net/2019/03/17/usd9t-shadow-finance.html

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#2

Well I guess I look forward to the cheap real estate when it collapses.

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#3

Late stage CommuCapitalism?

image

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#4

So loan sharks

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#5

2% month is 26.8% compounded, or do they insist on paying off the interest in full?

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#6

That’s just credit card rates, not really sharking.

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#7

I wonder if the apartments securing many of these loans are real, inhabited apartments or ghost apartments? Cause if ghost apartments get repossessed I don’t really see the problem.

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#8

com-add-text%20(1)

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#9

“They lent the equivalent of of $43 bn” != “They have $43 bn in outstanding loans”

Also the original report said the entire pawn industry made a pre-tax profit of only 1.7 bn yuan ($255million) so the implication is that most of these loans are for very short periods.

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closed #10

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