Tuesday, May 17, 2011

Winning in another Continent...possibly not

So,  maybe I won't be taking this job opportunity in Hong Kong afterall. I've been reading about speculations of a near term China real estate bubble burst. Everyone knows that China rules the world not and not the US. The Bank of China owns most of the US debt and other major superpowers, so it's not like "Big Bully" can really beat down on its Asian counterpart anymore. The quotes below from Bloomberg forebode a scary thought of another major economic tumble, of which the world cannot afford.

"Kangbashi, a city in Inner Mongolia, is the subject of Bloomberg's first video installment on these underpopulated, but   investment-heavy "ghost cities." And Kangbashi is just one city in the government's larger plan to create roughly 36 million affordable apartments in the country."

 "Currently, only around 30,000 people live in Kangbashi. But that hasn't stopped the government from investing $160 billion in the city's real estate construction in order to provide accommodation for an expected one million people, Bloomberg TV reports."


China is a manufacturing god. Their economy has been riding a steroid like growth which cannot possibly keep up. The government's real estate investments resemble a junky that's putting all his dope in for one big shot and then freaks out when reality sets in and realizes his big mistake. The government took a big bet in terms of relocating all their rural civilians into urban cities without realizing one logical factor. Will these people even know how to use the technology at their disposal? I did a research project back in college (econ major) regarding Chinese real estate and found out that most people outside of the cities were dumb as shit. So, how the fuck are they going to be using an elevator and a fucking computer and whatever gadgets are in their technologically advanced homes if they can't even fucking read???????? It boggles the mind....



http://www.businessinsider.com/hong-kong-property-in-the-event-of-a-china8217s-slowdown-2011-5

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