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Faraday Future CEO’s long trail of debt is finally catching up to him • The Verge
Sean O'Kane:
<p>Jia Yueting, the CEO and a co-founder of troubled EV startup Faraday Future, has a notorious history with money. While his rise to fame and fortune in China was built partly around his vision — he started a streaming company in 2004 called LeTV, well before Netflix shifted away from DVDs — it was also built on financial debt. For years, he followed a relatively simple formula. He found success with LeTV, borrowed against that success to try new things under the umbrella of “LeEco,” then borrowed against those ventures to do even more, stacking up debt along the way. With China’s economy booming at the time, and a large shadow banking system emerging that made borrowing easy, he was off to the races.

More than a decade later, Jia finds himself living in a mansion — one of a few that he owns, in fact — on the coastal cliffs of Rancho Palos Verdes, California. While that might sound like the dream life, Jia isn’t there out of choice. He’s been living there since last summer in self-exile, because that long trail of debt that he built up in China is finally catching up to him.</p>

When the tide goes out, you discover who's been swimming naked.
faraday  debt 
1 hour ago by charlesarthur
YouTube -- RussiaToday: On Contact: The history of debt forgiveness
'Economist and author, Michael Hudson, in his new book “…And Forgive Them Their Debts: Lending, Foreclosure and Redemption From Bronze Age Finance to the Jubilee Year,” shares with journalist Chris Hedges how Ancient cultures forgave debt cyclically to prevent debt peonage and the rise of an oligarch elite.'
history  economics  debt  landlordism  MichaelHudson 
12 hours ago by adamcrowe
Yi Gang Touts Flexible Monetary Policy in Sign of Renewed Focus on Growth - Caixin Global

The government will press on with its campaign to lower the economy’s debt ratio and contain asset bubbles, though in a more gradual way, People’s Bank of China (PBOC) Governor Yi Gang said in a speech Thursday.
china  debt  deleveraging 
yesterday by jayyy
James Angelos reviews ‘Adults in the Room’ by Yanis Varoufakis · LRB 27 September 2018
Populism, after all, as the political scientist Cas Mudde has put it, is ‘an illiberal democratic response to undemocratic liberalism’.
greece  europe  debt  finance  politics 
yesterday by soobrosa
The Predatory Lending Machine Crushing Small Businesses Across America
In May 2012, Yellowstone became what appears to be the first company in the industry to file a confession in court. Others copied the trick. The innovation didn’t just make collections easier; it upended the industry’s economics. Now, even if a borrower defaulted, a company stood a chance of making a full recovery. By tacking on extra fees, it might even make more money, and faster, than if the borrower had never missed a payment. In some cases, the collections process became a profit engine.
crime  debt 
2 days ago by craniac

In June, the CBIRC ordered city and rural commercial banks to classify all loans more than 90 days overdue as nonperforming by the end of next year, which has led to a surge in their nonperforming-loan ratios, according to CBIRC data. Analysts have attributed the rise in rural banks’ credit risk to their poor risk management and aggressive expansion over the past few years.
china  debt  deleveraging 
3 days ago by jayyy
A Financial Analogy for Technical Debt | AKF Partners
An interesting analogy of tech debt with real debt.
coink  financial  technical  debt 
4 days ago by paunit
This Vancouver home could become Huawei exec’s $5.6-million prison | The Star
"The mortgage documents may appear to indicate a tiny or non-existent down payment, but Usher said that would be a misinterpretation. He said the documents indicate a common type of mortgage offered not just by HSBC but by many Canadian banks.

“This is an open-ended mortgage. You may be using it to buy your car, to fix your house, to go on a vacation,” Usher explained.

“What it means is, they’ll give you money for buying your house, but it will also be like a line of credit. So what they put on the title is not what you’re actually paying; you’d have to see the loan agreement to actually understand that.”"

"Those policies include a 20 per cent foreign buyer tax when properties change hands, an increased property tax on properties worth over $3 million, Vancouver’s empty homes tax (one per cent of assessed value, although the current mayor has vowed to raise it to three per cent) and a provincial speculation tax that also targets underused properties.

“That’s the really interesting part of this case,” Yan said. “It really touches upon how Vancouver has become this city of hyper-transiency that has really shaped its housing markets.”"
vancouver  housing  debt  china  tax  crime  politics 
5 days ago by pacpost
Rethinking how the housing crisis happened | MIT Sloan
"And yet when the bottom fell out, the researchers found, there was a sharp increase in delinquencies for middle-class borrowers and borrowers with “prime” — or high — credit ratings.While all types of people participated in the crisis, borrowers defaulting on bigger mortgages were responsible for a greater dollar amount in defaults. The researchers found that the top quintile of borrowers by income were responsible for 13 percent of delinquent mortgage debt in 2003. That share increased to 23 percent by 2006. Meanwhile, the bottom quintile of borrowers saw their share of delinquent mortgaged debt drop from 22 percent in 2003 to 11 percent in 2006."
debt  finance  housing  research  history  mortgage 
6 days ago by pacpost

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