And so the chicken-likens of the Western commentariat gather round and
declare, China is doomed!
Source: Ing (China
housing prices continued to slump in February | snaps | ING Think)
THIS we should worry about? In the
last TEN years prices in China for new appts grew by ONE THIRD (33%). Second hand
rose by ONE FIFTH (20%). Both peaked in late-2021, and are now slowly
subsiding.
That’s a crisis says the Chicken-Lickens?
In the UK in the 11 years from 1996 to 2007 under the much- lauded stewardship of
Brown and Blair (‘The Great Moderation’), new and old UK houses rose TWO AND
TWO-THIRD TIMES (268%), that’s EIGHT times more than in China. And the esteemed
FT says it’s China that now has a crisis in their housing market! Praise
the Lord that we could have a China style crisis.
How did they do it? Government took
action to rein in speculators, developers but mostly banks. External funding (international
shark-banks) were almost completely excluded, local banks as if they were like Victorian
ladies corsets.
There is a lot of detail here which
will be unravelled over the next few posts.
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