Those trusting souls who arrived late to the biggest housing bubble in history have lost a lot of money. They are going to lose a lot more.
It’s here at last. Pop.
In one case, scores of property owners surrounded a Shanghai sales office of Greentown China Holdings Ltd. 3900, +8.58% GTWCF, -33.19% to protest the developer’s 25% cut to prices within a five-day period, according to a report on the NetEase NTES, +0.67% news portal site 163.com.
Protesters held banners with slogans such as “You cheated us!” and “300,000 yuan [$48,750] worth of assets evaporate within five days — years of work in vain!” according to photographs of the demonstration posted on the site.
It is happening all over China. Some protests have turned violent.
They thought prices would always go up. They were wrong.
Late-stage bubbles attract people who do not understand economics or manias. They get in late, and they lose everything early.
They thought they could get rich easily. They got in after the early comers really did get rich. “Me, too!” Sorry, Charlie.