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China’s Housing Bubble Has Popped

Written by Gary North on August 27, 2014

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.

Writes MarketWatch:

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.

Continue Reading on www.marketwatch.com

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One thought on “China’s Housing Bubble Has Popped

  1. 1baronrichsnot1 says:

    You sure this isn't a recycled headline dated 2006 from the NYT, or other US publication? Brings back memories of people screwed to the wall, late to market, unable to pay, NINJAS, no jobs, no income, crooked rules changes at most banks, goldman sachs, lehman bros, merrill lynch, fanny and freddie, bankruptcy of iceland, credit swaps, CDO's, it goes on and on! Some say Our gov't taught china how to steal the peoples wealth. I say they already knew how but needed the expertise to be able to stay out of jail, china should follow that blueprint! No ones is in jail, and only BAC has been held liable as a corp, not through the veil to the guilty individuals. Good luck china consumers, you have big gov't, very big gov't, you have corruption, ditto so do we!