He says the housing bubble is blocking economic reform because disposable income is going into housing. A decline in home prices will lead to faster rebalancing as assets come out of the real estate sector and flow into the economy. He says the government shouldn't fear a drop in revenue and a decline in infrastructure development.
My take: China's government leaders need to trust in the free market and let their economy stand on its own. Propping it up with government directed investment and a real estate bubble is a recipe for stagnation. Let the people spend and invest.
中国房价可能很快会跌25% 财富转向居民
Easter Eggs (1 of 21): Hot Air
-
FEEDPreface to all 21 parts: This is a special holiday weekend, because not
only does it contain Good Friday and Easter, but it also begins the Slope
of Ho...
No comments:
Post a Comment