Interesting piece from Seeking Alpha with some amazing data on Chinese real estate issues. Is this the Mother of All Bubbles.
Excerpts:
- The Chinese government has created the mother of all bubbles and when it pops, it will be felt around the world. The China miracle is not really a miracle. It is a debt financed bubble. Sound familiar?
- Since the 2008 financial crisis, the Chinese housing market has skyrocketed 60%. There are now 65 million vacant housing units. The question is no longer whether there is a Chinese housing bubble, but when will it pop.
- The price of land in and around Beijing has gone up by a factor of 9 in the last few years.
- Their $585 billion stimulus package was used to build entire cities that sit unoccupied. The 2.2 million square foot South China Mall, with room for 2,100 stores, sits completely vacant.
There are excellent charts in the piece, along with many more factoids and anecdotes.
So, is China now the mother of all bubbles?
If so, what happens when it pops? What's the fallout for the USA?
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