Why Jim Cramer says Chinese President Xi has overstepped

you had financial institutions at risk uh you couldn't let them collapse and yet the moral hazard uh involved and people who were irresponsible with their mortgages perhaps you don't want to let the general public fail at large yes but i think that i've been saying that president xi overreached here because all the other things that he's done i mean when he decides to slap down the video games okay so cut down video games cut down ride sharing money uh uh make it so that only david can find jack ma who was once very influential and then you get to this and he really i believe wanted to get the richest man in china which is the man who ran evergrand and the top people from evergreen and he wasn't able to do it he wasn't able to surgically remove the money of the top guys without bringing down the edifice of a company that it was 300 billion this is the first mistake i've seen to make but they also were slowing over all the the property development cycle right i mean there are there have been fewer people i mean that's in part i don't think this is a company that was based on the next sale the next sale very leveraged so do you think he knew i know people were like getting parking spots in return i do i do you do yeah i don't think that that was a big secret well then we've been talking about it for many many years why couldn't he just say listen here's the people who won't lose money i don't know but at this point that's why i come over and we'll see how it actually ends up listen land sales are a very important driver as well for local government revenue uh in china uh and the question really also will be i think for so many us-based investors what does it mean for companies that do rely on the consumer in china this is not done yet in terms of as a story you know is nike foot is traffic into nike stores at the same level it was let's prepare for what is it going to mean things of that nature i think that a lot of people who keep thinking that she is president for life he is not yet president for life and this is a very important constituency that he cannot afford to lose which is basically housing as david said there's like a guy on the committee of the seven who's in charge of housing and he's trying to figure out right now does she deserve to be president for life i mean literally this i mean look i'm not saying it's like you know there's democrats versus republicans i am saying that there is accountability and even president xi who we now regard as basically mao or stalin he's not you're not saying he's not going to go for another round oh he wants another round but i think he has to be more careful than he thought i do not understand why people think that this country is necessarily united on someone who may have made a major mistake here it was a mistake he is not that powerful that he can anger this big of a number of people when you hear that he says he's monetary unrest this is china for heaven's sake well yeah listen if you spent most of your life savings on an apartment that's not going to get done and has no prospect of getting done you're going to be pretty upset right what i'm saying that he had to figure out a way to be able to bail out everybody looking at those 4 000 people the media no one's talking about those people being disenfranchised right they're getting to keep the money that is not what she wanted i'm just saying can we just stop thinking that everything she does is right i'm not saying we don't necessarily do that but we are following we know because of no because of uh both what it means for the world's second largest economy and demand there and secondarily because of continued concerns about contagion even though those may be very well overblown in terms of you never know we've certainly learned that from the past that's why we're focused on the story shepard smith here thanks for watching cnbc on youtube

Channel: CNBC Television

Views: 40,955

Keywords: Squawk on the Street, CNBC, business news, finance stock, stock market, news channel, news station, breaking news, us news, world news, cable, cable news, finance news, money, money tips, financial news, stock market news, stocks

Id: 8hRwlyQoZWA

Length: 3min 34sec (214 seconds)

Published: Thu Sep 23 2021