Teeqoz said:
tokilamockingbrd said:
went to china for about 10 days in January of this year. When I returned I told all of my friends to pull out of Chinese investments.
Not only is their stock market inflated by government manipulation, but their entire economy is. I walk through a beautiful city there (Guangzhou) with a skyline as impressive as LA or Chicago. Reality hit when I went out in the evening to discover it was a ghost town. They built all of that stuff just to build it, no future return to be had there (any time soon). It benefits their GDP because it created jobs, but they cant just keep building forever at some point what they build has to generate return. |
Indeed, the big danger about this stock market crash would be if it made the obvious real estate bubble to burst as well. That's a much bigger bubble than this stock bubble. Actually this collapse had some pretty obvious signs showing it was inbound, but the chinese gov hid those signs, and still do, for the chinese who invested there.
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they have had real estate bubbles burst in the past decade (Island of Hainan is a good example), but their were mostly localized. After I returned I did some research and found out that these "ghost towns" are very common, and Guangzhou was actually not as bad as other (some people at least were there), they have built entire cities that have almost no occupants.
