

China Builds Desert Ghost Cities - chailatte
http://www.bloomberg.com/video/69817240/

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sek
Spain, Dubai and now China. I heard the exact words from constructors in
Dubai: "We sold them before we build them".

The formula is very easy: When building is more profitable than let people
living inside them, the real estate market is overpriced.

And if there are mechanics, which prevent the market from readjusting, a
bubble is generated. Ghost towns are the best examples you can get.

I can hear these intelligent people in the future: "Ooooh nobody has seen this
coming. We were thinking Chinas economy can grow forever with these rates". I
bet all these "biggest economy in 10 years" reports are all based on these
assumptions. This thing will be way bigger than Dubai (20 ghost towns for 1Mio
so far OMG) and probably result in a new gigantic financial crisis.

You read it here first.

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sek
It's worse, they talk about 64 Million properties. Very good Documentary btw.
<http://www.youtube.com/watch?v=rPILhiTJv7E>

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neworbit
Ok, so if you want people to move out of their current overcrowded cities to
somewhere else, I guess it makes sense in a command economy to build the
cities and then move them in. What happens if people don't want to move,
though?

~~~
nodata
You make them move.

