Quantum Windbag
Gold Member
- May 9, 2010
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...talking about how much money China is spending on infrastructure?
I do.
[ame=http://www.youtube.com/watch?v=pFbBDilOizA&]Elizabeth Warren for MA | TV Ad: Rebuild - YouTube[/ame]
Ever wonder what China is getting out of all that infrastructure spending?
It turns out that CBS actually asked that question.
What did they end up with?
China's real estate bubble - CBS News
Gotta love infrastructure though. China has everything the progressives want, centrally planned economy, massive government spending, a booming middle class, and a real estate bubble that is about to burst.
I do.
[ame=http://www.youtube.com/watch?v=pFbBDilOizA&]Elizabeth Warren for MA | TV Ad: Rebuild - YouTube[/ame]
Ever wonder what China is getting out of all that infrastructure spending?
It turns out that CBS actually asked that question.
If trouble comes in threes, then what'll be the next global market to melt down after the U.S. and Europe? Some are looking nervously at China.
China has been nothing short of a financial miracle. In just 30 years, this state-controlled economy became the world's second largest, deftly managed by government policies and decrees.
One sector the authorities concentrated on was real estate and construction. But that may have created the largest housing bubble in human history. If you go to China, it's easy to see why there's all the talk of a bubble. We discovered that the most populated nation on earth is building houses, districts and cities with no one in them.
Lesley Stahl: So this is Zhengzhou. And we are on the major highway, or the major road. And it's rush hour.
Gillem Tulloch: Yeah -
Lesley Stahl: And it's almost empty.
What did they end up with?
Lesley Stahl: Giant cities being built with people not coming to live here.
Gillem Tulloch: Yes. I think they're building somewhere between 12 and 24 new cities every single year.
Unlike our market driven economy, in China it's the government that has spent some $2 trillion to get these cities built - as a way of keeping the economy growing. The assumption is "if you build it, they'll come." But no one's coming.
China's real estate bubble - CBS News
Gotta love infrastructure though. China has everything the progressives want, centrally planned economy, massive government spending, a booming middle class, and a real estate bubble that is about to burst.