All posts by specuskeptic

Inside China’s Housing Bubble

This Salon article is relevant if the Chinese have an effect on the local market… and possibly some lessons to learn.

Money shot:
“But as one employee of the factory told me, the primary force pushing Guangxi’s economy forward is housing. In fact, the land upon which the factory was situated had become so valuable that the company was planning to sell it and move to another location — that was the primary business development plan!”

That’s a new twist on the flip.

…….

“One government official we spoke with on Thursday, representing the Guangxi Ministry of Commerce, apologized to us for the fact that the building we were meeting in had “only been built in 1995.” If you want to know what 10 percent economic growth, compounded annually, looks like, a visit to the city of Nanning offers a visceral introduction. But it also sounds a warning bell.”

Read the full article over at Salon.com