Top Chinese Central Banker: Our Property Crisis Is Worse Than The US And UK Bubbles

The Business Insider ^ | 6-1-2010 | Joe Weisenthal

[Wally_Kalbacken]

Tom Friedman - prepare to start applying egg to face.

[Ghost of Philip Marlowe]

Jim Rogers, too.

I’ve been saying this for months.

Number 1 rule of international economics: Never trust the economic data from totalitarians.

[GeronL]

For “stimulus” China built a whole new city that its people cannot afford to live in.

New Ordos was suppose to replace old Ordos, but who can afford to live in New Ordos?

There is a youtube video about this, its pretty amazing.

[blam]

China's Latest Economic Guidelines Expose A Government Terrified To Hurt Property Speculators

[GeronL]

http://www.youtube.com/watch?v=0h7V3Twb-Qk

[American Constitutionalist]

China's economic meltdown ?

[RightOnline]

Just watched it. Very interesting....and very damning of the concept of “stimulus spending”. Thanks for the heads-up.

[blam]

I remember in the mid-80's when the Japanese stock market was 39,000 and it was reported that the palace, housing and grounds of the emperor was appraised at more than the entire state of California.

The Japanese stock market is below 10,000 today. So...

[GeronL]

New Ordos is basically owned by speculators and government to this day I think.

[RightOnline]

That’s what was reported on the video, yes.

[GeronL]

Japan Inc was going to own the world. Yes, I remember.

[stephenjohnbanker]

Looks like China is about to find out that real estate values can also go DOWN ;-)

[jetson]

TIMBERRRRRRRRR!

[blam]

China PMI: Is Its Economy Slowing?

[stephenjohnbanker]

100,000 condo for 40,000, anyone??

[GeronL]

I still can’t imagine that so many people in China live without power and running water and tens of thousands of new homes and apartments are sitting empty in New Ordos.

lol.

How does this happen in a communist country? Wouldn’t the old China have forced them to move by now? Of course they can’t afford to buy those homes while making fifty cents an hour or whatever.

[Sender]

It’s a fragile and volatile situation. The newly rich Chinese who have cars and nice homes have built their foundation on the backs of the thousands who toil for 50 cents an hour.

[GeronL]

The “newly rich” Chinese is actually a small percentage of their population concentrated in Beijing and Shanghaii. I dare say the majority of Chinese still have no electricity and running water.

[gudong]

I dare say the majority of Chinese still have no electricity and running water.

Do you have any data to support that idea?