HT
2014-12-14 13:47:03 UTC
SBD all, Merry Xmas!
Has China deflated the bubble? not yet, if anything it is still growing. At the end of the interview the question that was asked was left unanswered, which is: Can China a government controlled capitalist avoid a bubble burst? when the American open market capitalist could not.
China has deflated the bubble temporary by introducing a new 'one investment property' policy thus reducing demand for the time being. It was a Chinese government stimulus initiative by changing the law to allow people to buy properties that triggered the boom, contributing some 20-30% to China economic growth.
Can the Chinese government with its $4Trillion reserve bank rolled its collapsed financial system, if it happens? this $4T reserve is not cash in a room, once the panic starts, trust suffers and even asset rich means little. The government will be the last one left standing!
These empty buildings remind me a little of many mega property developments in VTE.
The following script is from "China's Real Estate Bubble" which originally aired on March 3, 2013, and was rebroadcast on August 3, 2014. Lesley Stahl is the correspondent. Shachar Bar-On, producer.
http://www.cbsnews.com/news/china-real-estate-bubble-lesley-stahl-60-minutes/
Has China deflated the bubble? not yet, if anything it is still growing. At the end of the interview the question that was asked was left unanswered, which is: Can China a government controlled capitalist avoid a bubble burst? when the American open market capitalist could not.
China has deflated the bubble temporary by introducing a new 'one investment property' policy thus reducing demand for the time being. It was a Chinese government stimulus initiative by changing the law to allow people to buy properties that triggered the boom, contributing some 20-30% to China economic growth.
Can the Chinese government with its $4Trillion reserve bank rolled its collapsed financial system, if it happens? this $4T reserve is not cash in a room, once the panic starts, trust suffers and even asset rich means little. The government will be the last one left standing!
These empty buildings remind me a little of many mega property developments in VTE.
The following script is from "China's Real Estate Bubble" which originally aired on March 3, 2013, and was rebroadcast on August 3, 2014. Lesley Stahl is the correspondent. Shachar Bar-On, producer.
http://www.cbsnews.com/news/china-real-estate-bubble-lesley-stahl-60-minutes/