The Conservative Cave
Current Events => Economics => Topic started by: bijou on March 20, 2014, 07:55:43 AM
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One of the primary drivers of the real estate bubble in the past several years, particularly in the ultra-luxury segment, were megawealthy Chinese buyers, seeking to park their cash into the safety of offshore real estate where it was deemed inaccessible to mainland regulators and overseers, tracking just where the Chinese record credit bubble would end up. Some, such as us, called it "hot money laundering", and together with foreclosure stuffing and institutional flipping (of rental units and otherwise), we said this was the third leg of the recent US housing bubble. However, while the impact of Chinese buying in the US has been tangible, it has paled in comparison with the epic Chinese buying frenzy in other offshore metropolitan centers like London and Hong Kong. This is understandable: after all as Chuck Prince famously said in 2007, just before the first US mega-bubble burst, "as long as the music is playing, you've got to get up and dance." In China, the music just ended. ...
via Zero Hedge (http://www.zerohedge.com/news/2014-03-19/music-just-ended-wealthy-chinese-are-liquidating-offshore-luxury-homes-scramble-cash)
Zero Hedge is taking the view that the global property bubble has burst, we'll have to wait and see if this really is global or just local forces at play.
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Evidently they did not recall what happened to the Japanese many years ago. Looks like history might repeat itself.
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Evidently they did not recall what happened to the Japanese many years ago. Looks like history might repeat itself.
It's kind of weird because the orientals are all about customs and rituals, and history and heritage.
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It's kind of weird because the orientals are all about customs and rituals, and history and heritage.
Not the Communist Party, they were all about destroying traditional Chinese Culture, and replacing it with the culture of the Party.
They toppled landmarks, raided Confucius' tomb, burned temples, and altered their very writing system to weaken the Chinese people's connection to their past, so they could fill vacuum with themselves. Quite nefarious when you think about it.
As to the bubble, I came across a good nuts & bolts explanation of what's going on here (https://www.youtube.com/watch?v=5mKKgvoxjZ4). In short, the debt genie has been released from his bottle.