Thursday 11 November 2010

The Strangeness of the Chinese Property Bubble ...... a Bubble of Bricks and Mortar

Build and leave empty seems strange and it's consequences may auger in the next financial crisis, one beginning in China! What the Chinese need to understand is the relationship between income an value.

Forget labour theory of value or a money theory of value.

It's the system working smoothly that allows for real success not speculation on future domestic incomes which just may not be realized. It will be interesting to see whether the speculators have their numbers correct or are they behaving according to addictive processes of gambling and unrealistic assumptions of habit persistence in the housing market.

This is communism and capitalism mixed together in a very strange way. More communist than capitalist? No!

Will household balance sheets of future China be strong enough to sustain the value of the property built above sale price, or will too many homes be built and left empty?

http://www.bbc.co.uk/blogs/thereporters/robertpeston/

Will not time reveal the lasting importance of friends and mutual respect? Be kind to those who think well of you and those you know and try to add positive elements to your world. Promote peace in your heart and sunshine in the minds of those around you by your own good works. Elevate the level of discussion by thinking less of the issues and more of how you can reduce the tension of stress that arises with honest disagreement. Relax by breathing more deeply and consciously.

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Sketches from scratches is a provocative blogspot that has grown out of the Wuh Lax experience. It is eclectic, which means that it might consider just about anything from the simple to the extremely difficult. A scratch can be something that is troubling me or a short line on paper. From a scratch comes a verbal sketch or image sketch of the issue or subject. Other sites have other stuff that should really be of interest to the broad reader. I try to develop themes, but variety often comes before depth. ... more!