AM64
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Evergrande may have been covered earlier, but this article is rich.
5 Lessons Evergrande Taught Us About The Chinese Economy
I never thought I'd agree with the CCP, but that sentence is absolutely correct. That's also something people across the globe need to understand about markets and investments. Skimming increases the product cost ... just like taxes and energy. Higher costs affect demand negatively. Corporate executives who amass fortunes based on short term profits destroy companies in the long term.
5 Lessons Evergrande Taught Us About The Chinese Economy
2) China's property bubble has created spooky "ghost cities" throughout the nation
The Chinese property bubble, which observers have been talking about for years, has encouraged more and more speculation, with investors buying up properties with no intention of living in them. Unfinished and vacant buildings and apartments litter the provinces of China. Estimates vary, but around 20% of China's total housing stock now sits unoccupied. The Financial Times says there is now enough vacant property in the nation to house more than 90 million people. That's enough empty homes to fit the entire population of Canada. Or France. Or Germany.
In some cases, entire urban areas lie empty. These "ghost cities" include replicas of Paris, Venice and even Jackson Hole, Wyo.
The Communist Party of China has been aware of the dangers posed by its wild real estate market for some time. In 2017, President Xi Jinping began signaling he wanted to do something about it with a speech to the 19th Party Congress. He said, "Houses are built to be inhabited, not for speculation."
I never thought I'd agree with the CCP, but that sentence is absolutely correct. That's also something people across the globe need to understand about markets and investments. Skimming increases the product cost ... just like taxes and energy. Higher costs affect demand negatively. Corporate executives who amass fortunes based on short term profits destroy companies in the long term.