Tom Friedman - prepare to start applying egg to face.
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.
TIMBERRRRRRRRR!
We've been ripping off the world for decades with our currency pings and trade dumping tactics.
We now have such a massive trade embalance and currency reserves, we decided to boost our GDP with building Potemkin villages (entire cities and shopping malls sitting empty). That worked for a while, but we are now learning that is economically unsustainable. Thus we created a real estate bubble even bigger than what occured in Europe and the US. And that bubble is about to go POP!
I think the housing problem concerns massive over building of high rise apartment/condos in urban centers. The hysteria to build over ran the business restraints of demand because there was so much cheap money available for construction loans.