The article is very interesting, much more so than the meta discussion here. Mark's thesis is that the middle class have no place to put their money except in real estate which is creating an unsustainable bubble which will lead shortly to a crash and a possibly violent upheaval. The Chinese have many unfulfilled needs, such as health care, which could be funded by their foreign earnings, but this would drive the dollar down and the yuan up, killing the boom.
He states that the consensus driven leadership is hiding from the problems of the bubble economy. Interesting times.
I did find it interesting that in 183 comments that were left on this article (not now, as this is a repost, but in the earlier discussion that was linked), there was scant mention of the property bubble, excepting one person who simply said "definitely"; I found the progression fascinating, and am going to now go back through and re-read some of the previous articles I had seen on Chinese property valuations again to learn more.
Comments
The article is very interesting, much more so than the meta discussion here. Mark's thesis is that the middle class have no place to put their money except in real estate which is creating an unsustainable bubble which will lead shortly to a crash and a possibly violent upheaval. The Chinese have many unfulfilled needs, such as health care, which could be funded by their foreign earnings, but this would drive the dollar down and the yuan up, killing the boom.
He states that the consensus driven leadership is hiding from the problems of the bubble economy. Interesting times.
I did find it interesting that in 183 comments that were left on this article (not now, as this is a repost, but in the earlier discussion that was linked), there was scant mention of the property bubble, excepting one person who simply said "definitely"; I found the progression fascinating, and am going to now go back through and re-read some of the previous articles I had seen on Chinese property valuations again to learn more.