more of america going overseas.

Discussion in 'Current Events' started by froggy, Sep 2, 2009.

  1. froggy
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    froggy Gold Member

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  2. WillowTree
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    WillowTree Diamond Member

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  3. froggy
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    froggy Gold Member

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    At the end of February, 40 wealthy Chinese embarked on a housing tour of the US. The trip, run by Soufun Holdings, one of China's largest real estate companies, kicked off in Boston and continued on to San Francisco, Los Angeles and New York. For a fee of US$3,600 apiece, tour group members perused homes in the US$500,000 to US$1 million range.

    The trip was so popular that Soufun had to turn away 400 applicants.

    "Every day people are calling about it," said Zhao Xinyu, public relations manager at Soufun's Beijing office. Based on customer demand, Soufun may expand such trips to include Australia, the UK and Japan.

    The popularity of Soufun's trip has led to speculation that this might signal a new trend in Chinese spending habits, with individuals looking to store more of their wealth overseas.

    Bricks and mortar

    According to the Asia-Pacific Wealth Report 2008 by Merrill Lynch and Capgemini, a consultancy, wealthy Chinese investors have traditionally held a high proportion of their assets in real estate. In 2007, a year that saw investors diversify into other assets against the backdrop of a booming stock market, high net-worth individuals in China allocated 21% of their assets to real estate, against a global average of 14%.

    Now, the drop in housing prices and a steady renminbi have created an opportunity for wealthy Chinese to invest in real estate abroad, said Rupert Hoogewerf, CEO of the Hurun Report, a web portal that provides information on China's wealthy.

    "What used to cost US$1 million now costs US$800,000," he said.

    Hoogewerf estimates China is home to more than 50,000 people with a net worth of over US$10 million, and more than 800,000 with a net worth of US$1 million. But Chinese law restricts individuals from taking more than US$50,000 out of the country in one year.

    According to Hoogewerf, the restrictions mean buyers are predominantly traders, or those with businesses that export overseas. These people have stockpiles of US dollars and the savvy to navigate real estate overseas.

    Investing abroad generally means a combination of increased opportunity and a perceived increase in risk at home, said Michael Pettis, a professor of international finance at Tsinghua University. Last year, China saw a large influx of hot money and a record trade surplus of US$290 billion. Although much of this cash is now moving in the opposite direction, the flow is not as strong as that which brought it in. This leaves experts to infer possibilities from other trends.

    While it's still too early to tell whether these prospective US homeowners herald a shift in Chinese spending and investing habits, it is worth monitoring the movements of small business owners, said Pettis.

    "They're the ones that have the best sense of what's going on at the ground level," he said. "It's good to watch what they are doing."

    what will we sell away next?
     
  4. GRX Dragon
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    GRX Dragon Meijin Ryuu

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    The problem is for too many administrations, this country has failed to get certain things right. Reagan being the closest. There's so many taxes on the books corporations have to pay by employing in America that it should be no wonder why they outsource employment to countries like China. Alas, we can thank the likes of Obama/Bush/Clinton for these actions.
     
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  5. Truthmatters
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    Truthmatters BANNED

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    Under Bush infrastructure was sold off to foriegn interests in the from of toll roads and the like.

    You guys never seemed to mind when that was mentioned over the years.
     
  6. cbi0090
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    cbi0090 Member

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    I can remember when everyone was saying this about the Japanese.
     
  7. veritas
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    veritas OBKB

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    The Dutch own more than all of em put together, but they are quiet about it.
     
  8. pete
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    pete The food stamp president

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    Now this would make more sense to fix quickly rather than the health insurance and hiring czars etc .... jobs jobs jobs
     
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  9. GRX Dragon
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    GRX Dragon Meijin Ryuu

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    Are you insane!? It's too common of a sense for our own good. Remember, fewer taxes means the less laws the government regulates too, and the less regulation the government has, the less power it has... and we can't have that! Not ever, we can't have people thinking for themselves.... it just would make it harder to convert people into Marxists, man!
     
  10. whaleboat
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    whaleboat Member

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    I live in South Texas , not too far from my house the Chinese are supposed to break ground on a brand spanking new steel mill this month . Can you imagine that , communist China owning real estate and the means to production in the good old USA ? At the same time there are huge abandoned steel mills where my wife is from , just west of Chicago . I'm old enough to remember the railroads , mills , and factories all going tits up back in the late 70's and early 80's . I was in Oregon when the feds basically shut down the economy of the entire Pacific Northwest under the guise of proecting Mr. spotted owl , and I was here on the Texas coast when the state and federal government joined forces to destroy the commercial fishing industry . All the while our national economy , and along with it our character , was being trampled to death there were Republicans in office , then the Democrats , and then some more Republicans and so on and so on . As somebody once said , I don't remember who , speaking about Democrats and Republicans , "They're both taking us to the same place , they're just arguing over who gets to drive ."
     

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