China's real estate bubble: 'The biggest in human history' .

The Chinese real estate will NOT collapse like in the United States.

These are ghost cities with literally NOBODY there. The real economy in these cities is arealdy completely non-existant. There is no demand for these properties unlike the places in established cities. Demand to live in established cities and economies will keep the prices in most places stable.

The people at risk are mostly Chinese nationalists with a generation of relativily higher earnings and net worth who are investing into second-homes.. There aren't as many options to diversify investments in China because the government restricts where you can put the money. As long as American money keeps flowing in by the billions they will have more money than they know what to do with.

All China really has to do is end the one child policy and in 20 years all of these cities will be fresh new booming cities with a young demographic. I can see some foward thinking by not allowing future housing scarcity to create a real estate bubble and handicapping the next young generation with the debt of overpriced homes.

There is no "Housing Bubble" in China.

The Chinese CAN NOT declare Bankruptcy.

Mr. Chin buys an apartment....loses his job and can't pay the mortgage. The Government keeps him in it and collects whatever they can when they can until Mr. Chin dies. Then the apartment is re-sold to the next person.

Very little money is lost.


America loans $300,000 for Mr. Smith to mortgage an apartment. He loses his job and gets kicked out of his apartment. Bank writes off $300,000+ loss. 4 months later Mr. Jones mortgages the same apartment for $300,000....few months later HE loses his job. Bank writes off $300,000+ loss. Few months later Mr. King mortgages the same apartment....he too loses his job and loses the apartment....Bank writes off $300,000+ loss.....

Who's got the losing economy?

It ain't the Chinese who are not allowed to declare Bankruptcy. Now do you see why America's Public Debt is so large?

We've been getting robbed by our economic system.

Not long ago in America the Govt. gave people free land. So they could build something on it to make something of themselves...so a Government could tax them for revenue. They WANTED the citizens to be successful.....

Now we have a Govt. that's been ripping us off, eliminated all careers, jobs, and created a cycle which is a meat grinder to tear people apart to generate the most $$$ possible.....


China's winning the economic game. Don't mess with Asians when it comes to MATH.

China's urbanization drive could fuel social unrest over land disputes and pose financial risks if money is thrown around recklessly, a senior communist party official and a leading economist said on Thursday.

Shifting people from the countryside to cities is a policy priority for China's new leaders as they seek to sustain economic growth that last year slowed to a 13-year low of 7.8 percent. The government hopes 60 percent of China's population of almost 1.4 billion will be urban residents by 2020.

LINK

China's new leaders are planning a system of national residence permits to replace the household registration or 'hukou' regime, a government source said, a vital reform that will boost its urbanization campaign and drive consumption-led growth.

The hukou system, which dates to 1958, has split China's 1.3 billion people along urban-rural lines, preventing many of the roughly 800 million Chinese who are registered as rural residents from settling in cities and enjoying basic urban welfare and services.

LINK

I've been hearing about this real estate bubble for so many years now, its a little hard for me to take it seriously. It seems every year for the last decade, you hear some analyst or another talk about how within a year or two, the Chinese bubble will burst, and all hell will break loose. And when that scenario doesn't come through as predicted, those same analysts recycle their claims.

This thread should be flagged up the yin-yang (pardon the pun), because if China's pseudo economy build on a foundation of porous, impure cement does indeed collapse, it will make the "GFC" a generational event.

...That's assuming it doesn't lead to WWIII, which is just as likely.

reply to post by CristobalColonic


Ugh. China's 'psuedo-economy' as you put it, actually builds things. It is based on tangible, real products. That's more than you can say for Western economies. Like I said before, analysts have been predicting the demise of China for over a decade. Every year, you hear some accusation or another. A bubble about to pop. Whatever. These same analysts failed to predict the '08 crisis in the West. These are the same guys that keep saying America is on the rise again. That Europe will be just fine.

Reuters: Ignore China's property bubble at your peril (3:39)

Mar. 12 - A shock wave through the entire economy, declining asset prices and peoples' savings wiped out. Gillem Tulloch talks to Tara Joseph about the 'when' not 'if' of China's property bubble bursting.

the biggest builder in china says the bubble is coming, and people already protest at his offices, and he is scared of what will happen when he real bubble hits

scary times