I’m watching a 60 Minutes segment about the Chinese real estate bubble:
China has been nothing short of a financial miracle. In just 30 years, this state-controlled economy became the world’s second largest, deftly managed by government policies and decrees.
One sector the authorities concentrated on was real estate and construction. But that may have created the largest housing bubble in human history….
Unlike our market driven economy, in China it’s the government that has spent some $2 trillion to get these cities built – as a way of keeping the economy growing. The assumption is “if you build it, they’ll come.” But no one’s coming….
Lesley Stahl: Can I find this all over China?
Gillem Tulloch: Yes, you can. They’ve simply built too much infrastructure too quickly.
And they want us to trust her with our economy?
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As far as China, I know that I didn’t build that.
You may not have built it, but you sure as heck paid for it.
Senator (Gack!) Warren’s campaign: Let’s build the next housing bubble together! I approve that message.
What a loon. Massachusetts voters, WTF (that would be winning the future, right?) is wrong with you people?
It’s incredibly simple cause and effect. Things have a real price. When you dictate an unnaturally cheap price, the result is bad behavior D D DDuhhhhhhh.
It is blatantly self-destructive to follow these policies. There is no word(s), tone, or volume to describe the the feelings I have for these people.
Antidote to Eliz. Warren as posted on the Tip Line by Liesel409:
http://knotmywisconsin.wordpress.com/2013/02/28/duffy-hands-bernanke-his-ass/
CHECK THIS SEAN DUFFY VIDEO OUT!
(And please let me know if I’m missing some horrible something about this fellow.)
Nothing against Duffy, but I have been reading quite a bit suggesting the GOP is wrong about Bernanke. James Pethokoukis is just one of the conservative analysts who has been voicing that opinion. Rammesh Ponnuru and economist David Beckworth have written on this subject as well. I certainly came away from weekend reading these articles and blog posts with doubts about the GOP knock against Bernanke. Beckworth was raving about Bernanke’s speech Friday night on Twitter as well. It is all quite overwhelming but worthwhile nonetheless.
I should clarify this does not mean they don’t find fault with some of Bernanke’s decisions, just that the GOP is attacking him from the wrong position.
Perfect Juxtaposition. The media does such a good job of ignoring this and the terrific job central planning is doing in Europe!
F*ck them. So, obnoxious.
“Unlike our market driven economy” Huh?
Warren looks like an yuppie auntie everyone has that never got married. Kind of feel sorry for her, but try to be on her good side so that she keeps you in her will.
Sorry all of my aunts are/were married and never divorced.
The people who would come to the empty cities are farmers. The average farm makes 2,000 RMB (Chinese yuan, 6.33 RMB = $1). In the cities, maybe they make 1,200 RMB a month. The cost of rental, electricity, water, television, garbage pickup, and cleaning per apartment, per month? Could be 800+ RMB per month if they live in the farmers’ housing. If they live in regular housing, it could be 1,200+ RMB. Food, drink, travel, and cigarettes cost extra. So, those cities will remain empty. However, whereas the Chinese government want to keep people out of the cities (traffic, population density, pollution), Obama and his wizards of smart want people to move from the burbs to the cities. There, choice of residence will be taken away cuz we will all be living in projects.
Can’t people see that this is the natural result of centrally managed economies? No single human or small group of humans can duplicate the wisdom of free markets where thousands of humans make resource allocation decisions in their own interests every day. Markets will make some mistakes, but not near as many as the central planners.
You know… I watched a piece featuring Scott Brown and when I compare him to the fake Indian, there’s no contest. Yet the dumbed down MA public chose the candidate with absolutely nothing to recommend her for anything.
Ya jis gotta scratch yo’ haid ‘n wunner..
Often many don’t necessarily look at the end result of ‘rebuilding’ from DC. They simply care about who profits from the spending. There are legal and accounting agencies that focus heavily, if not exclusively, on tax policy, advising clients on how to get access for direct contracts, grants, loans, credits, etc. It’s an industry.
The same applies to China, but there it seems to be the worst case scenario of making ‘busy-work’ that wasn’t really needed at the time. Or wanted. We aren’t far off in some cases ourselves.
What Elizabeth W. and every Keynesian will never admit:
The Communist state owes its ability to spend on their infrastructure to Capitalism and to American consumers and businessmen who invested PRIVATE manufacturing dollars in their factories and equipment. The free market system has done more to increase the economic and social mobility for millions of mainland Chinese.
Socialism failed. Capitalism won…in China.
At one time, the Left’s activists understood that not everyone could enjoy a beachfront property in Hawaii, nor is it possible to produce energy without disrupting the environment and displacing people, animals, and plants. Since that brief brush with reality, they have since adjusted their positions and justified the change through semantic games, emotional appeals, and outright deception.
There is no instant gratification, whether material, physical, or ego, without consequences. The first leads to disruption and displacement, the second leads to premeditated murder (e.g. abortion), and the last leads to corruption of, among other things, science.
Now dare we compare our own market manipulations to theirs?
When interest rates are artificially low while simultaneously inflation erodes our dollar. . . In other words we can’t save our money.
Wouldn’t people maybe look for something tangible and safe to own… like a house/property.
In other words when other markets are closed by the government a lot of people might invest in the most rational alternative. Then to add fuel to the fire we can have government programs create loans for people who can’t afford them and when ppl won’t fund them we’ll guarantee them!
We’re nothing like China. Worlds apart
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