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How's China going to solve its housing bubble? Because we've heard about that building up, but there seems to have been no solution. Just because it hasn't blow
by Mirioron 7y ago
How's China going to solve its housing bubble? Because we've heard about that building up, but there seems to have been no solution. Just because it hasn't blown up yet doesn't mean it won't.
- kristianov 7y agoThe Chinese government is really smart about it. From what I understand, it goes at follows: the price bubble will not burst if real estate market has little to no transactions. The trick is to limit the number of eligible buyers with policies, so that the price can only go up. It's really genius if you think about it. Chinese housing market is NOT a free market, and the government is the biggest player (and judge) in it. If it is made-up from the beginning, how can it collapse? Well, unless the government collapses first.
- chillacy 7y agoAnyone can predict a bear market... the trick is when.
- Mirioron 7y agoYou can't really predict a 'when' if the government controls the economy. But I would say that a 'when' doesn't matter much if it happens at some point.