I'll add - China is different, so it looks like a land of contractions. One of them is how its government is on paper a monolithic entity, but does not behave l

I'll add - China is different, so it looks like a land of contractions. One of them is how its government is on paper a monolithic entity, but does not behave like a monolithic entity. The local governments like the bubble, because they get revenue from land sales, and probably get bribed by developers for approving new construction. The local government companies and departments also own (or control) a lot of land, and get to exploit that in various ways. The central government (or the central party committee, who outrank both the government and the military - which does not report to the government) worries about the economy as a whole, and the stability of society. The buck stops with them. They care about the housing bubble, but with dozens of provinces, hundreds of cities, and third world government accountability (lots of stuff is done on paper, because no-one wants to be accountable) there's not much they can really do in a hurry.