alon_honig

9 месяцев назадdiscuss

The problem with recovery rates is that they different by orders of magnitude across different borrowers and credit products (for example car loans are around 70%, industrials are a bit loweer at 40%-50%, and high yield credit cards are single digits) so if you have a random sample of credit products in a portfolio it will approximate 40%. What generally happens is that the bank will sell it off to a specialist distressed investor long before the bankruptcy event so 40% is both wrong and not a horrible number to go by.

alon_honig

11 месяцев назадdiscuss

And they still don't have clean tap water. Like anywhere. Even tier 1 cities. Outside of a few routes The high speed trains are less convient than airports (but due to subsidies much cheaper). Quality of construction is horrible and by local standards house prices are extremely high. Basic Healthcare is pretty good but many procedures (i.e. hospitalization) are out of reach for the majority of the population. White collar Fraud is rampant (my friend had his bank account frozen because his name sounds like someone else). Their top tier apps are often crashing (seriously Chinese people have all sorts of tricks to force reboot an app) and overall not up to western standards.

China is great but it is still a middle income country like Thailand or Malaysia. It's sheer size means that there will be pockets of innovation in a sea of what is overall suboar by western standards. There is definitely things that the west can learn from china (like the value of hard work and getting things done) and some of their tech (like batteries ) is leading edge but we have to put things in perspective. Every civilization will have it's advantages and disadvantages. There is no superior system. For the west (especially Europe) we need to embrace change. That is something that the Chinese truly lead the world.

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