China Experiences Inorganic Investment
This is a story about too much money sloshing about to find investment value. A new shopping mall is underutilized and scrambling to find occupants.
https://www.linkedin.com/today/post/...t-list-large_0 The Metro Detroit area has a similar project in the works. http://www.freep.com/article/2013031...pment-eyesore- |
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The 'communist' party there is terrified of a downturn I've heard. Google empty Chinese cities. There could be a bubble.
This is an interesting take: http://www.forbes.com/sites/realspin...-empty-houses/ Pete |
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https://www.youtube.com/watch?v=uGt_qeAnBAM |
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While I was flying airplanes I saw acres of that stuff from above Michigan. That made my head spin as I listened to fellow pilots and all the money they made from making stuff. It was a club that, while elite, I felt guilty about belonging to. A bright point came when I attended the big aviators event at Oshkosh. A few women staffed a booth that promoted aviation as a means to see the big picture by flying thinkers over their neighborhoods. At that point I decided that it would be better to give my airplane money to women like that than spend it making noise and meeting other developers. A truth is in there somewhere. I don't know how to sprout it. |
Too little tax and a bunch of new cash? Investing becomes a gambling game, played for the thrill of winning. That means these guys aim for big returns, double digit, and big digits at that. This aim forces them to take risks, and they lose a lot. They don't like that, they want to be a winner, so like all losing gamblers they make bigger, riskier bets.
This is the new rich with a few million, of course. The really rich don't play this game, except to be the 'house' for the gamblers.... A high final tax bracket, say 80%, would take away a lot of the incentive for this dysfunctional, wasteful development. |
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I always loved walking down the street and window shopping. Malls are too overwhelming. A bit like plastic surgery. http://1.bp.blogspot.com/-DmWKMg_CAs...w_shopping.jpg |
Chinese economy will soon catch up with those empty buildings.
In the meantime I like what China is doing in Africa...laying down massive infra structure and of late addressing Africa's education needs. |
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