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Trampa501

Why Politicians Love A Construction Boom..

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This article about political corruption in Turkey, nails it I feel

Erdogan’s Islamic backers in Saudi Arabia and the Gulf keep Turkey’s current account deficit from going south with large infusions of funds and there’s nothing they understand more than high-rise towers. As Sochi Olympic expenditures have demonstrated in Russia, construction provides highly efficient conduits for rewarding cronies. And as Western economies also found out, there’s no bubble more easily inflatable than a housing bubble; you can borrow for it and you can borrow against it. You can sell securities through it. You can have a pretend economy.

http://www.forbes.com/sites/melikkaylan/2014/01/02/corruption-at-the-top-in-turkey-how-construction-is-involved/

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But in this country Why Politicians don't like a Construction Boom. Aim for 250,000 units but make excuses when it is only 100,000. Because at the end of the day the Milibot, Meacher, Blair, Cameron and friends will only thrive if they make scarce what they have already got. The whole banking industry is relying on scarcity of supply to make their loans good to boot.

Deborah Orr in her article in the Guardian on a concurrent thread refers to the poiticians relief when the construction boom never materialises.

Edited by crashmonitor

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Its the same line of thought, certainly, but to compare run of the mill construction projects to olympic events is a stretch. Stefan molyneux did a vid a while back on sochi, and noted how the "one offness" of such projects allow massive waste and fraud because there is no set amount for what an olympics 'should' cost.

Tower blocks have a more standardized cost of building, so the waste growth cant be quite as manipulated.

funny article though. We now hate the Saudis pawns. Its a start I guess. Oddly, our politicians still kneel down and kiss the hands of actual Sauron.

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But in this country Why Politicians don't like a Construction Boom. Aim for 250,000 units but make excuses when it is only 100,000. Because at the end of the day the Milibot, Meacher, Blair, Cameron and friends will only thrive if they make scarce what they have already got. The whole banking industry is relying on scarcity of supply to make their loans good to boot.

Deborah Orr in her article in the Guardian on a concurrent thread refers to the poiticians relief when the construction boom never materialises.

Just look at the London skyline. That has to be the ultimate 'pretend economy.'

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Its the same line of thought, certainly, but to compare run of the mill construction projects to olympic events is a stretch. Stefan molyneux did a vid a while back on sochi, and noted how the "one offness" of such projects allow massive waste and fraud because there is no set amount for what an olympics 'should' cost.

Tower blocks have a more standardized cost of building, so the waste growth cant be quite as manipulated.

funny article though. We now hate the Saudis pawns. Its a start I guess. Oddly, our politicians still kneel down and kiss the hands of actual Sauron.

Except for being muliplied three or four times (and upwards) of the initial estimates.

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