did anyone watch the 60 minutes segment on the housing bubble in china?
i happened to watch it and was scared shitless. i was aware of all the empty apartments and ghost cities but somehow i thought they were built and owned by the state. it seems my preconceived ideas about the so called managed economy were quite off the mark. it is still a managed economy but not quite as managed as i had thought. according to the 60 minutes segment all the empty apartments are owned by private investors. a very thoughtful chinese builder predicted an "arab spring" in china when the shit hits the fan and the private investors learn they are sitting on white elephants. as the chinese say, may you live in interesting times. this should be real interesting in the coming years.
the downturn in china is not news and i was always curious if the so called managed economy could better deal with a real estate bubble than the almost laissez-faire american model. there is a term in penny stocks called "the greater fool than i" strategy. basically you buy shares in some piece of shit moose pasture and your plan is to sell it to "a greater fool than yourself" at a higher price than you yourself paid. that is the impression i got about the chinese real estate bubble. people are clamoring to invest in real estate because it is going up in value and they don't want to miss the boat. the good news for these guys is they aren't missing the boat. the bad news is sooner or later the boat is going to sink.
this leads me to another question. are the chinese growth statistics accurate? at best they are suspect, at worst they are bullshit. how much of the reported economic growth is real and how much is due to inflation? that is the trillion dollar question.
growth for the sake of growth is the ideology of a cancer cell.
i've fallen in love with this song;
and of course i love you sons of bitches.