A Hong Kong court ordered the liquidation of China Evergrande, the world’s most indebted property developer.
Evergrande has assets of about $245 billion, but owes about $300 billion.
Its demise is a “controlled collapse,” but still raises systemic risk and will hurt investors, says an analyst.
That’s literally what the return on all the other investment is for: the assumption of risk.
I guess it’s the same shift in mentality as the credit card processing machine asking for a tip for everything by default.