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China Fucked its Own Face w/ Poor Infrastructure Investments
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Date: January 7th, 2016 9:59 AM Author: razzle scourge upon the earth To shore up the economy, China could further reduce interest rates so as to help the real estate market. It could also further increase its already considerable stimulus spending on infrastructure.
Still, while such measures might help in the short run, they would only add to one of China’s biggest problems in the long run: a huge overhang of debt that was used to finance poorly judged investments. Many of those investments, like high-speed rail lines built in smaller provincial capitals for political reasons, may struggle to generate enough of an economic return to cover the interest on the money that was borrowed to finance them. |
Date: January 7th, 2016 10:19 AM Author: appetizing lodge candlestick maker but but the infrastructure
(TT) |
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Date: January 7th, 2016 10:21 AM Author: razzle scourge upon the earth (http://www.autoadmit.com/thread.php?thread_id=3089840&forum_id=2"#29540294) |
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Date: January 7th, 2016 11:52 AM Author: self-centered alcoholic address (http://www.autoadmit.com/thread.php?thread_id=3089840&forum_id=2"#29540906) |
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Date: January 7th, 2016 12:46 PM Author: smoky passionate senate (http://www.autoadmit.com/thread.php?thread_id=3089840&forum_id=2"#29541362) |
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Date: January 7th, 2016 10:20 AM Author: Rose Juggernaut Puppy They never transitioned to a consumer-oriented service economy. A 50% savings rate combined with a lot of worthless infrastructure spending won't get you to the future. Devaluing the currency might help the exporters in the short-run, but in the long-run they need a stronger yuan to encourage consumer spending at home. (http://www.autoadmit.com/thread.php?thread_id=3089840&forum_id=2"#29540289) |
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Date: January 7th, 2016 10:22 AM Author: Cream abode partner what good would it do to cut interest rates when they have hundreds of brand new residential towers sitting vacant? its not that people cant afford them. people actually own them since that's one of the only ways you can save money in china. but no one lives in them since theres simply not enough people to fill them. (http://www.autoadmit.com/thread.php?thread_id=3089840&forum_id=2"#29540301) |
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Date: January 7th, 2016 10:29 AM Author: plum home Let me make sure I'm clear on this: your argument is that China doesn't have enough people? Is that your final answer? (http://www.autoadmit.com/thread.php?thread_id=3089840&forum_id=2"#29540333) |
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Date: January 7th, 2016 10:32 AM Author: Rose Juggernaut Puppy I think he's trying to say that without a proper consumer banking industry people "invested" in certain assets as a means of simply storing value. I wonder if part of the problem is cultural. (http://www.autoadmit.com/thread.php?thread_id=3089840&forum_id=2"#29540354) |
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Date: January 7th, 2016 10:43 AM Author: Cream abode partner i'm saying the residential market in china is insufficient to fill all the new residential towers they've built in the past 8 years:
http://www.asianews.it/news-en/Crisis-in-China:-64-million-empty-apartments-19459.html |
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Date: January 7th, 2016 10:48 AM Author: plum home I am familiar with the ghost city phenomenon. Now please link to news suggesting that a mass default on these apartments is imminent. These people aren't getting liar loans. (http://www.autoadmit.com/thread.php?thread_id=3089840&forum_id=2"#29540441) |
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Date: January 7th, 2016 10:52 AM Author: indecent haunting dilemma giraffe I think the bigger issue in China is commercial real estate. Lots of people are gobbling up residential real estate in major Chinese urban areas simply as a way to store cash, and don't care if it's not leased out or whatever.
Still, China knows they need to develop a consumer class, which is hard in a culture that's as tight fisted as they are. Your typical salaried family in China probably saves 90 cents of every dollar it earns. |
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Date: January 7th, 2016 10:52 AM Author: Cream abode partner you're arguing against a position i haven't taken. but you can't pay for housing developments when there's no market for it. cutting rates won't do any good because there's not enough people to fill them. all the $ spent on building these things will have to be written off (http://www.autoadmit.com/thread.php?thread_id=3089840&forum_id=2"#29540457) |
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Date: January 7th, 2016 11:49 AM Author: plum home All of these units have been paid for bro. These people aren't taking out mortgages. It is shitty that they are empty, but I just don't see how there are likely to be significant negative consequences in the immediate future. The trouble only comes when people invest their entire fortune in these places and then can't sell them to generate cash they need. I understand that many people have invested their entire net worths in these buildings, but not sure what ills that will reap in a communist country where people have at most one child and where there are strong norms about taking care of your parents. (http://www.autoadmit.com/thread.php?thread_id=3089840&forum_id=2"#29540893) |
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Date: January 7th, 2016 1:20 PM Author: Pearl fortuitous meteor you don't understand how taking billions of dollars in cash, acquired largely through production and other useful, economy-building sources, and converting it into unproductive empty "real estate," which cannot produce income OR be sold at a profit AND is not needed for actual shelter, is a drain on the country's economy? they would have gotten more utility by lighting those yuan on fire. (http://www.autoadmit.com/thread.php?thread_id=3089840&forum_id=2"#29541599) |
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Date: January 7th, 2016 10:54 AM Author: primrose market I'd be interested in reading /r/AsianMasulinity's take on all of this. (http://www.autoadmit.com/thread.php?thread_id=3089840&forum_id=2"#29540467) |
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Date: January 7th, 2016 11:53 AM Author: razzle scourge upon the earth (http://www.autoadmit.com/thread.php?thread_id=3089840&forum_id=2"#29540913) |
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Date: January 7th, 2016 12:44 PM Author: contagious hospital WHITTTEY (http://www.autoadmit.com/thread.php?thread_id=3089840&forum_id=2"#29541342) |
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Date: December 1st, 2025 4:45 PM Author: nyuug (Gangnam WGWAG Playboy) as opposed to superior anglo infrastructure (http://www.autoadmit.com/thread.php?thread_id=3089840&forum_id=2"#49475098) |
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Date: December 1st, 2025 4:45 PM Author: nyuug (Gangnam WGWAG Playboy) yearly conflagrations destroying billions in infrastructure sounds like superior anglo culture to me
http://www.xoxohth.com/thread.php?thread_id=2910459&forum_id=2#48534542 |
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Date: December 1st, 2025 9:34 PM Author: nyuug (Gangnam WGWAG Playboy) (http://www.autoadmit.com/thread.php?thread_id=3089840&forum_id=2"#49475912) |
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Date: December 1st, 2025 4:47 PM Author: https://imgur.com/a/o2g8xYK I wonder if OP was a Trump supporter in 2016 (http://www.autoadmit.com/thread.php?thread_id=3089840&forum_id=2"#49475105) |