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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 379.91+0.4%Nov 11 4:00 PM EST

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To: elmatador who wrote (61444)2/23/2010 1:48:32 PM
From: Hawkmoon  Read Replies (5) of 217689
 
As the government realized that urbanization had a limit.
There were people that could still be better off staying where they were then moving to the city.


So.. the free capitalist paradise that China has apparently become depends upon the government deciding where people should live? Do I understand that correctly?

And now what happens to all of those empty apartments that will not be filled because the government is shifting it's emphasis from urbanization to rural development? Why are the prices still increasing (or at least holding their value)?

Hmmm....

We all know that fear is a bitter motivator for initiating proper "price discovery" than greed.

What I believe is that China's RE speculators will discover what we've discovered over and over again; namely that pricking a bubble is like trying to control an explosion (implosion?).

I don't know why TJ and others think that China is immune from the consequences of such over-speculation.

I personally believe that the best we can do is reshape and re-direct it so that it's damage is contained and diffused. But there still will be damage.

Oh well.. we'll see eventually...

Hawk
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