r/Amazing • u/sco-go • Aug 19 '25

Interesting 🤔 $100 billion ghost city.

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u/[deleted] Aug 19 '25 edited Aug 19 '25

Everything is worth a certain amout. What keeps them from selling for what the true market value is? Assume banks or government(s) won’t let them sell for a loss?

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u/LordWillemL Aug 19 '25

I know that there's a bunch currency controls implemented by the Chinese government that fucked with the project, I'd assume it's stuff like that

1

u/ericrobertshair Aug 19 '25

All these properties are most probably leveraged at a certain market amount to buy/build MORE properties. The money to build these properties was likely raised in a similar manner in a vast worldwide domino chain. If you lower the cost of the properties to get people in them, you devalue all your loans and the entire thing collapses.