apparently they have entire cities empty, nobody lives there . over 20 of them.
this seems like a massive bubble to me.
Whats the symbol for 3x short China?
When the coasts are flooded in 2016 at least people in China will have somewhere to go. Earthquakes may strike there as well as here but i doubt they will let us stay there. China will be in 3 pieces by 2020 due to the idiots in government- they will end up broke up. AGNC just declared $1.25 and MTGE $.90. I think AGNC is the best REIT out there.
Fears of a bubble building in China's property markets were debunked by Stephen Roach, senior fellow at Yale University, as investors become increasingly concerned over the country's rising property prices.
According to the former non-executive chairman of Morgan Stanley Asia, China's residential property market represents only around 5 percent of the country's gross domestic product (GDP), thus if things go bad it will not devastate the economy.
"Of that 5 percent [GDP], only 2 to 3 percent is at risk...Does that sound like an economy that will be strangled by a housing bubble?" "This is not going to bring China down, and unlike the U.S., which allows bubbles to develop, the Chinese are very aggressive in trying to control that kind of thing."
When you move 15 to 20 million people a year from the country to the cities, you have to build cities in anticipation of that. Today's ghost city is tomorrow's fully populated metropolis,
Many local chinese govt received order from Beijing to meet GDP target. The manufacturing has slowed down. The only easy way meet that target is to build infrastructures. That is the #1 priority of Beijing Govt.
The economy of China is not what concerns me. It's their military and their low standards of morality and a sense that they can do whatever they want to do as long as no one can stop them.
I often wonder if the Chinese would have ended up like they are if they had not gone through so many years of opium addiction and lived around the kind of sordid people that tolerated an opium addicted culture so that they could profit from it not caring about the harm to others. How many more hundreds of years will it take for them to start perceiving people as humans beings to be respected and not as objects to be used to create a means to an end with ultimate power being that end.
Most people in the world have much less aggressive goals as they do. Most are willing to live with what they have and make the best of it. Most others don’t look outside their own borders for available land and resources but are satisfied to trade for what they need, not to think of ways to take it for less than it is worth.
If the plan is to rent out the ghost towns in China, then I don't see how it can work. The masses are still too poor to afford to rent luxury housing. It looked to me not like a potential bubble, but an actual bubble which has already burst. They're just not admitting it yet.