China’s real estate bubble.
November 30, 2010 Leave a comment
I am predicting that Asia will enter a recession in 2011.
Recessions are the necessary outcome of loose monetary policies that create bubbles. China has been inflating its economy at a rate of 20% or more per year for several years now.
Clear evidence of this is found in China’s real estate market. To really grasp the magnitude of this, I have embedded the video below. This is not a new video, but it is very worth watching. Sometimes seeing is believing.
The one thing you CAN say about China’s waste though… at least they are building STUFF. Whereas when you think about the pure waste created by America’s military which exists to blow things up and kill people, it doesn’t seem like such a bad misallocation in the end…