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China's housing bubble

those private owners are 3 generations worth of Chinese peasants pooling their savings to buy investment condos in these Ghost Cities that nobody in the country can afford to live in LOLZ. and then they lose it all when the govt lowers the prices on their 100 million unsold apartments
 
jdhu said:
Bolded part is the key. Eldritch is saying that the govt manipulates the currency, etc. Not "private owners."
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Ahh, I see where our disagreement is. It's my opinion, that the Chinese government IS owned privately. They've never had an election have they ?
 
planegray said:
Ahh, I see where our disagreement is. It's my opinion, that the Chinese government IS owned privately. They've never had an election have they ?
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Interesting perspective. You are using "private" in two different senses, but interesting nonetheless.
 
In China... Chinese citizens/investors are holding the paper on millions of empty apartment/homes. When the bubble pops, and investment loses value, the citizen/investors lose investment money.

In USA... US government is now holding the paper on millions of empty apartment/homes, that have not yet come back to market. The Federal Reserve is still buying $40 billion in mortgages a month. On top of the trillions they have already bought. Temporarily halting our housing bubble from fully collapsing. Eventually these millions of homes will have to be sold, slowly dragging home prices downward. Meanwhile rents go through roof because of all the apartments/condos/homes sitting empty/unused.

Who loses? All US tax payers. Thank you US government, for fucking us royally. Even ones who didn't take place in the housing Ponzi scheme. But all tax payers will pay the price in bad economy, higher rents and higher taxes, when this mess finally sorts itself out many years from now.

Please tell me now? In this housing bubble situation who is the more communist regime? USA or China?

Bizzaro world...
 
A city with no residents sounds like fiction. Dozens of them would be hard to believe outside of the Twilight Zone.
Just like the mess here theirs is also caused by government policy. Them being limited with their investment choices. A lot of people are accused of having it but does the concept of capitalism and free market exist anywhere?
China's mess is unlikely to end well but a few will make fortunes. There's an opportunity here but I'm not seeing it.
 
I believe our country is probably the worst over capita, but think of all the natural resources wasted on building these vacant monstrous sized cities. That is one of the reasons we have been paying higher gas prices. And for what? So China can have a fake continuously growing GDP? Not to mention that a collapse in China will likely be devastating for us and around the world. China holds the largest amount of US currency outside the US and if they liquidated that our money would plunge in value. (Correct me if I'm wrong.)
 
bojangle said:
I believe our country is probably the worst over capita, but think of all the natural resources wasted on building these vacant monstrous sized cities. That is one of the reasons we have been paying higher gas prices. And for what? So China can have a fake continuously growing GDP? Not to mention that a collapse in China will likely be devastating for us and around the world. China holds the largest amount of US currency outside the US and if they liquidated that our money would plunge in value. (Correct me if I'm wrong.)
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China does have lots of our "currency" which is actual dollar bills. What they have a shit ton of is our DEBT, as in when our gov needs money they borrow it from anyone who will lend it (bonds and such). Pretty soon china will smarten up and stop buying our debt. The minute that happens, game over. No one will want to lend the US money because we're just never going to pay it back. As in right now - we can barely pay interest let alone principal.
 
also the US has been printing LOTS of money so the value of the USD willb go down against the yuan. japan is starting to get into this game?
 
Japans situation is worse than ours, as far as national debt. Each persons portion of debt in the US is $40000+. Each persons portion of debt in Japan is nearly 2x that, although it is a much smaller country. They are going to try to print their way out of trouble like we have been doing for decades.

When a country prints money, its because they refuse to ask for it from their citizens (tax), yet the citizens are still on the hook for that printed money. IT'S STILL A TAX. Just one that we didnt ask for or consent to.
 
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