Tag Archives: real estate bubble

At This Moment: Chinese Banks Are Being Hammered, Real Estate in the Ultimate Crony Capitalist State is Ugly

We have for a long time writen about the property bubble in China. The Chinese real estate system is driven by decrees from Beijing which then tumble down to the local level. Prices are often tossed aside for political reasons. China wants “growth,” or did, at all cost, even if it required a huge misallocation of resources. Because the market has not been allowed to work in China, especially in the real estate sector, it makes sense to expect prices to eventually burst the dam.

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