Diegetics

The Western real estate bubble was built on the desire to give loans to poor people. Poor people are always the weak horse, especially when being used as political and moral pawns.

The Chinese real estate bubble is built on the firm foundation of wealthy developers and corrupt local governments. Local money and corrupt governments in bed with each other represent a very strong horse.

China's bubble, being made of sterner stuff, won't pop until the situation is far more out of control. (Comparatively.) This larger crash, crashing as it will be against the backs of a poorer people, will be far worse than the Western crash was in the West. But it will also matter far less to the world economy because it will be both localized and considerably smaller.

Lost wealth is lost wealth. Chinese, N Koreans, Cubans, are not exempt from the economic effects of falls in asset values.

Whether or not they co-ordinate a homelessness project is smooshing the cake frosting around.

Americans, like the Chinese, utilize a central bank which is NOT about reducing everything to money, but taking into consideration politics in national finance. What we have learned is once again that central planning can certainly produce disasters.

I do not know enough about Chinese Real Estate to know if it is not essentially nationalized or not, but I think it is fair to say that like most nationalization schemes, the poor and unfortunate are the least of anyone's concerns.

It begins. This might be a false start, of course. But either way it's going to be bad, as seen by the fact that these numbers are already more amazing than anything we ever saw in the West.

http://imarketnews.com/node/29203

http://www.nytimes.com/2011/04/18/busin ... gewanted=2

When it finally hits the NY Times a year late, you know you got a bona fide phenomenon going on

Looks like the splattered heads of those Foxconn workers were not in vain.