Visitors Now:
Total Visits:
Total Stories:
Profile image
By Againstcronycapitalism.org
Contributor profile | More stories
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

Chinese Real Estate Mogul: China’s housing bubble “Is the biggest bubble in history”

Monday, October 17, 2016 8:38
% of readers think this story is Fact. Add your two cents.

(Before It's News)

china-traffic-police-cc

Modern China is driven by central planning and a deeply crony culture. Interestingly the country has succeeded in reinflating its housing bubble. I say reinflate because about a year and a half ago things looked like they were really going to bust. (Thanks to the unsound monetary policy that created the initial unstable boom.) Then the government and the banks intervened (in typical central planner fashion) and we’re off to the races again. The government delayed the inevitable. But the debt monster lurks, even and perhaps especially in the red hot Shanghai real estate market.

This is central planning, not the market.
This is central planning, not the market.

(From The New York Times)

China is in the midst of a dizzying housing bubble. Shanghai’s average housing price is up nearly one-third from a year ago, with prices in major cities like Beijing and Guangzhou not far behind. Chinese consumers are rushing to buy homes before the government steps in with restrictions.

When rumors swept through Shanghai that the government would require homeowners to pay more in taxes and down payments to buy additional properties, many couples filed for divorce so that one partner could still be treated as an independent buyer…

…Last month, economists at the Bank of China warned in a report that worsening asset price bubbles were adding to a frothy market that could result in trouble. The day before, Wang Jianlin, a politically connected property and entertainment magnate who is one of the country’s richest people, told CNN that China property was “the biggest bubble in history.”

The Chinese property bubble is not solely a Chinese problem. A real bust that unwinds quickly could have very destabilizing effects both on the global economic front and in geopolitics.

Click here for the article.

http://www.againstcronycapitalism.org/

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.