China Just Overtook The US As The World's Largest Economy

[mai]

Blouge said:

Confucius says wise man should not squander wealth on malinvestments.

“The most important thing for Tianjin’s government has always been a high GDP rate. That means the government has to spend a lot of money on huge projects like this one. In China, these kinds of wasteful projects are everywhere.” - http://www.marketplace.org/topics/world/marketplace-25/chinas-economic-boom-leaves-trail-ghost-cities

Housing bubles is a side effect of rapidly growing market. As for malinvestment, 3/4 of Chinese households assets are in real estate, while 3/4 of American household assets are in... finance. I dunno, if I had to choose I'd have opted for few square meters and roof over my head than cut paper :D Yeah, yeah I know that price of real state will be by an order of magnitude lower while taxes and costs will grow during inevitable crash of both. Still Chinese are wiser...