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How is the East better positioned when this article is about a massive failure due to property speculation? It just took a different and exaggerated form in Chi

How is the East better positioned when this article is about a massive failure due to property speculation? It just took a different and exaggerated form in China due to the rightly perceived shakiness of Chinese stocks and the limitations on land and property ownership. If this development cements in the minds of the Chinese populace that buying an extra apartment as an investment is no longer a safe place to store their money then who knows what's going to happen next. If you can't keep your money in stocks and you can't keep it in real estate then how do you invest for your future? This is an even more pressing question due to their rapidly aging populace with the prospect of little to no support from their children and non-existent grand-children. The real-estate market in the West may be bonkers but at least someone in their prime earning years can invest in stocks if they can't purchase a home. That has its own risks but with a little knowledge you can mitigate them and with patience you can wait them out and even benefit from them.

ilikerashers 3y ago
I don't think that the Chinese are forced to buy property because of the perceived shakiness of the stock market. Rather it's a cultural norm that's embedded itself in their psyche. Also, I disagree that using houses as your store of wealth to fund healthcare is a sane policy. People should be paid for work.
- throwaway4aday 3y ago
  They're not compelled to but they don't want to invest in stocks due to bad experiences in the past. Now there is a bad experience with investing in real estate. You have to store wealth somewhere otherwise you'll constantly be losing wealth. Ideally, one could simply bank their savings without it losing value while also investing in a variety of other assets rather than putting everything into stocks or real estate but that's not the world we live in at the moment. If you believe people should be paid for their work then you should also believe that the money they are paid for their work should not be bled away from them.

ilikerashers 3y ago

I don't think that the Chinese are forced to buy property because of the perceived shakiness of the stock market. Rather it's a cultural norm that's embedded itself in their psyche. Also, I disagree that using houses as your store of wealth to fund healthcare is a sane policy. People should be paid for work.

throwaway4aday 3y ago
They're not compelled to but they don't want to invest in stocks due to bad experiences in the past. Now there is a bad experience with investing in real estate. You have to store wealth somewhere otherwise you'll constantly be losing wealth. Ideally, one could simply bank their savings without it losing value while also investing in a variety of other assets rather than putting everything into stocks or real estate but that's not the world we live in at the moment. If you believe people should be paid for their work then you should also believe that the money they are paid for their work should not be bled away from them.