The Evergrande (“EverSCAMMED”) fiasco is nothing more than a classic Bernie Madoff Ponzi scheme involving property developers and greed-driven investors who chased high returns while forgetting about the existence of risk. (Every generation, it seems, must learn this painful lesson the hard way…)
Like all successful Ponzi schemes, Evergrande’s rise to become a global Fortune 500 business hinged on it finding a steady supply of new suckers to hand over their money as “investments” in the Evergrande scheme.
Buoyed by a flood of incoming investment money, Evergrande churned out entire “ghost cities” of apartment buildings across China, selling the ludicrous idea that these apartments would serve as retirement assets for the millions of Chinese citizens who “invested” in their construction. As long as the buildings kept going up — and the bond payments were made on time — everybody convinced themselves they were getting rich.