Thursday, April 14, 2011

Chinese Real Estate Pops

Thereby demonstrating the futility in assuming that someone else will pick up the tab for your foreign adventures -
Prices of new homes in China's capital plunged 26.7% month-on-month in March, the Beijing News reported Tuesday, citing data from the city's Housing and Urban-Rural Development Commission.

Average prices of newly-built houses in March fell 10.9% over the same month last year to CNY19,679 per square meter, marking the first year-on-year decline since September 2009.

Home purchases fell 50.9% y/y and 41.5% m/m, the newspaper said, citing an unidentified official from the Housing Commission as saying the falls point to the government's crackdown on speculation in the real estate market.
The Real Effect
Of course to assume that a huge bubble pop in the Chinese market won't affect us is prudent, right? Or that the Chinese won't seek to start wars, similar to the United States in an attempt to shift focus and secure dominance, right? Or they won't seek alternative economic funding to challenge the United States hegemony. I mean, they're only building new military units at a breakneck pace including aircraft carrier, singular. What could possibly go wrong? You don't think that the same military which was befuddled by a bunch of Saudi terrorists, spread around the globe fighting skirmishes could be surprised by the sudden emergence of not one, but three aircraft carriers and an army to boot? Nah, can't happen.

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