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China's property bubble is heading for a spectacular burst

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China's housing market is set for a hard landing - The Term Sheet: Fortune's deals blog Term Sheet

China's housing market is set for a hard landing

By Shawn Tully, senior editor-at-large January 23, 2012: 5:00 AM ET

The numbers are grim: China's property bubble is heading for a spectacular burst, and its effect on the country's economy will be widespread.

FORTUNE -- The Chinese government's announcement last week that growth for 2011 slowed only slightly to a still impressive 9.2% was greeted enthusiastically by the world's stock markets. Investors also remain buoyant on China's future. They appear to be buying the official line that the gigantic property price bubble is gradually and smoothly deflating, posing little risk to an engine that's so crucial to the future of global trade.

But the math tells a different story. The housing frenzy has driven prices so high, so fast, that a crash on the scale of the real estate collapse in Japan in the 1990s is a virtual certainty. And China's already exaggerated official growth rate could take a pounding, all the way to the zone of the unthinkable, into the low single-digits.

As Aliber puts it, "In China, the housing boom is a far bigger source of growth than is widely recognized, and it's totally unsustainable."

China can't grow its way out of a European recession
Aliber got his first clue that the craze spelled disaster from a former student living in Beijing. The young Chicago alumnus told Aliber that he'd just moved into an apartment building with several hundred units, and was the only one living there. Investors had bought all the other apartments that hadn't sold.

Get ready for the Japan-Style depression in China with a rapidly aging population, all this while China is still a low-income 3rd world country.
 
Our stock market tanked in 2007 and that didn't stop China. Real estate market readjustment is normal and welcome.
China's GDP growth has been fueled by construction. And the real estate bubble burst kills the construction market, instantly producing tens of millions of unemployed migrant farmer workers who will then become a destabilizing force.

When the growth slows while the inflation stays the same due to fixed yuan exchange rate, this is when the Chinese public revolt against the communist party.
 
China's GDP growth has been fueled by construction. And the real estate bubble burst kills the construction market, instantly producing tens of millions of unemployed migrant farmer workers who will then become a destabilizing force.

When the growth slows while the inflation stays the same due to fixed yuan exchange rate, this is when the Chinese public revolt against the communist party.
Keep deluding yourself. Chinese companies are outcompeting Koreans because you guys tried to occupy the low end market in manufactured goods. We are grabbing your lunch and eating it. And you can't do a thing.

Like smart phones (ZTE blade)

http://www.trustedreviews.com/Orange-San-Francisco--ZTE-Blade-_Mobile-Phone_review

And automobiles (Great Wall Motors)

2010-2012 Great Wall X240 SUV / 4WD Reviews Australia www.greatwallmotors.com.au


Our economic might is getting stronger and stronger, so we will make sure Korean peninsula remains divided forever. It's far more likely South Korea will suffer another North Korean or Japanese invasion than to successfully reunify its North.

:lol:
 
Keep deluding yourself.

Our economic might is getting stronger and stronger, so we will make sure Korean peninsula remains divided forever. It's far more likely South Korea will suffer another North Korean or Japanese invasion than to successfully reunify its North.

:lol:
No. It is YOU who are deluding himself. You will have to use all that economic 'might' to solve your internal economic issues while that abomination call 'North Korea' continues its decline. The only way you can keep the Korean peninsula divided is to occupy North Korea, putting an even greater strain on that 'economic might'. There is only one Germany. China and Cuba had to change. The current of current events does not flow in China's favor.
 
Is it true that 1st time home buyers required to pay 50% down on a home to buy on credit ? Subsequent home requires at least 60% down to buy with credit ?
 
SC, can you post some pics of great wall motors? never heard of them
This is how Great shameless motor run its bussiness :lol:
Great Wall Motor Company, one of the few privately-owned Chinese car companies, has copied designed and built all of the European-bound models specifically to meet EU whole-vehicle type approval standards," I.M. Group said in a prepared statement for the press.

"This will ensure that Great Wall models deliver high standards of crash-worthiness, equal to those of modern European and Japanese vehicles."

The UK-based importer said that it will release further details about the launch of the Great Wall brand next year.

The Chinese automaker became known to the Western public a few years ago when it introduced a series of cars that shamelessly copied European and Japanese products including the Fiat Panda and Toyota - Scion cars.
British Group to Import China's Great Wall Motor Cars Into Europe from 2010 - Carscoop
 
My family owns a 2400 sq ft Apt in Dhaka. Its worth about $300k. If we rent it out, it won't fetch more than $900/month. People are paying these prices with cash.
 
Keep deluding yourself. Chinese companies are outcompeting Koreans because you guys tried to occupy the low end market in manufactured goods. We are grabbing your lunch and eating it. And you can't do a thing.

Like smart phones (ZTE blade)

Orange San Francisco (ZTE Blade) Mobile Phone review - Trusted Reviews

And automobiles (Great Wall Motors)

2010-2012 Great Wall X240 SUV / 4WD Reviews Australia www.greatwallmotors.com.au


Our economic might is getting stronger and stronger, so we will make sure Korean peninsula remains divided forever. It's far more likely South Korea will suffer another North Korean or Japanese invasion than to successfully reunify its North.

:lol:

Lies Lies Lies!!! Korean phones and cars are much more popular than Chinese one. Never ever heard the name of ZTE and the Great Wall Motors.
 
Keep deluding yourself. Chinese companies are outcompeting Koreans because you guys tried to occupy the low end market in manufactured goods. We are grabbing your lunch and eating it. And you can't do a thing.

Like smart phones (ZTE blade)

Orange San Francisco (ZTE Blade) Mobile Phone review - Trusted Reviews


And automobiles (Great Wall Motors)

2010-2012 Great Wall X240 SUV / 4WD Reviews Australia www.greatwallmotors.com.au


Our economic might is getting stronger and stronger, so we will make sure Korean peninsula remains divided forever. It's far more likely South Korea will suffer another North Korean or Japanese invasion than to successfully reunify its North.

:lol:


I don't know about other countries but in India, Chinese products have very low Brand value.,almost None. 'Made in China' though is the way to go, just like other countries.

---------- Post added at 12:13 AM ---------- Previous post was at 12:11 AM ----------

Lies Lies Lies!!! Korean phones and cars are much more popular than Chinese one. Never ever heard the name of ZTE and the Great Wall Motors.

That's Propaganda, Not lying. which is official in China.:D
 
I don't know about other countries but in India, Chinese products have very low Brand value.,almost None. 'Made in China' though is the way to go, just like other countries.

That's Propaganda, Not lying. which is official in China.:D

Yes you are true. China made product will never match the quality of goods what Koreans and Japanese manufacture. Mobile phones made by local Chinese companies are portable Bombs, lots many people died in India because of its explosion. My father bought a Japanese Casio calculator, and the calculator still works after 15 years. Same with Samsung products.
 
Yes you are true. China made product will never match the quality of goods what Koreans and Japanese manufacture. Mobile phones made by local Chinese companies are portable Bombs, lots many people died in India because of its explosion. My father bought a Japanese Casio calculator, and the calculator still works after 15 years. Same with Samsung products.

we only kill Indians, because that's what Indians are worth.

Anyways, it doesn't matter. The writer has very little idea of what a financial bubble is.
 

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