Chinese Real Estate Bubble Finally Crashes
I have been reading about the Chinese real estate bubble for at least a year now. Time Magazine has had a couple of articles showing completely empty newly constructed cities. They also explained how investing in real estate had become the national past time. People invested all of their money in new real estate investments and it appears crap has finally hit the fan. All of their money is tied up in apartments that they can't sell. For 3 months in a row real estate prices have fallen. They are now down more than 20% in the last 3 months. Real estate prices had tripled in the last few years so it was just a matter of time before the bubble deflated. Here is a video from Reuters explaining the problem. http://www.reuters.com/video/2011/12/02/chinas-real-estate-ghost-towns?videoId=226140847 The Chinese govt's answer to every problem is to build more stuff so it should be interesting to see how they respond to this crisis.