Monday, March 18, 2013 2:25:48 AM
Ever since last summer when I went and worked in China for the Summer I have been saying this.
The company I worked for was one of the largest construction companies in China and it was easily the least efficient company I have ever seen. Even the Chinese guys who had worked at British and American companies agreed with me.
Sunday, March 17, 2013 9:38:42 PM
People have been waiting for this since before Gordon G. Chang wrote his economic bestseller: "The Coming Collapse of China" in 2001. You can get old and bankrupt waiting for the fallout, because China has a government that can effectively set policy and legislate.
If/when it comes, I wouldn't gloat; The Chinese economy was and remains all that separates the recession from the New Great Depression. America won`t escape unscathed. If the Dollar strengthens against the Yuan, the trade deficit will worsen. If China pulls back foreign investments, US jobs and liquidity will evaporate. Europe will not be spared, nor will Africa, the middle east, the rest of Asia. Not even China`s nemesis: Japan.
Personally, I am cashed up and waiting for an opportunity. But I won`t be buying American, I will buy in China on weakness. It still has more potential.
Sunday, March 17, 2013 1:39:01 PM
China has right now about 64 million vacant apartments and homes. The American housing bubble was at it's worst around 560,000 unsold new homes. Yet this is not uncommon, many countries are having similar issues with their housing bubbles. Spain is probably #2 with 700,000 unsold homes. And is offering residency to anyone buying a home worth more than $130,000 euros in an effort to save its housing market. Ireland, Britian, Argentina, the Netherlands, Italy, Canada, Germany, Portugal, New Zealand, ect. These are just a fraction of the countries around the world that presently have their own housing bubbles. Yet since 2007 most are presently attempting to maneuver out of them. Still, I would not be so eager to see this or any housing bubble pop, as we learned from the American housing bubble, if even one pops it has global consequences.
In my own view, I fear this, such wide spread economic instability has historically been the precursor to massive wars.