China Property Bubble to Pop -- Gillem Tulloch

[Azrael]

Property prices across mainland China have continued their upward march, even as a supply overhang reaches dangerous proportions. As evidence, Tulloch, points to surveys — which he acknowledges are unscientific but says are still useful — that indicate nationwide residential vacancy rates could be as high as 50%, while in Beijing it could be as high as 60%.

Mainland China Internet portal Sina.com tabulated one such survey — which Tulloch cited in a recent report — by urging Internet users to go out and count the blackened windows among new residential developments.

Tulloch says he also gathers his impressions using Google Earth, scouring satellite and street views for evidence of where building has run out of control, spawning entire ghost cities.

[Alph]

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.

[Tinker]

[Mr. Perfect]

[Tinker]

[Mr. Perfect]

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.

[Tinker]

[Mr. Perfect]

[Tinker]

[Mr. Perfect]

[Tinker]

[Mr. Perfect]

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.

[Torchwood]

[Azrael]

[Azrael]

[Azrael]

[Alph]

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

[Ammianus]

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.