Wednesday, February 9, 2011

HPI (and inflation) out of control? How to quash HPI if you’re the Politburo

China is orchestrating a 30% crash in the property market

Shanghai daily news article apparently says the increase in property purchase costs, property taxes, and interest rates are a 3-pronged attack on property speculation. Is there anything we can learn from the Chinese?

Posted by notyethomeless @ 01:17 PM (1328 views)
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13 thoughts on “HPI (and inflation) out of control? How to quash HPI if you’re the Politburo

  • mark wadsworth says:

    Yes. How to eat with chopsticks.

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  • sibley's b'stard child says:

    Where’s that Simon68 chap that refused to believe Chinese property was in a bubble (or in fact hear anything negative about the Chinese economy); not heard much of him of late?

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  • Yes. how to pass off plastics and potato upon the local and poorest of their population and call it rice.

    Welcome to the immense possibilies of globalisation.

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  • 2. sibley’s b’stard child said…Where’s that Simon68 chap that refused to believe Chinese property was in a bubble (or in fact hear anything negative about the Chinese economy); not heard much of him of late?

    ~The same place as chemtrailsarenotaconspiracy went after looking at declassified documents. Fail! lol

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  • @SBC

    I’ve heard that he now goes under the name of Wun Ung Lo.

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  • sibley's b'stard child says:

    Any relation to Wash Ung Lo?

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  • The Chinese have other growth industries, so they can stand a House Price Correction. We can’t.

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  • @will: The Chinese have other growth industries, so they can stand a House Price Correction. We can’t.

    We can’t stand the full cost of propping up the housing market….. the massive social impact of the bubble and borrowing is not a price worth paying from where I’m standing. I’m all for the Chinese approach

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  • The difference is that the Chinese are doing things the other way round to us… They have made money and now they’re spending it, whereas we borrowed it and spent it without really having a plan for how we would pay back the debt (or without actually thinking there would be a need to pay it back because houses only ever go up).

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  • I read that the South Korean govt is doing the same too. Why is it only us and the Aussies who insist on letting housing bubbles wreak their maximum havoc?

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  • Don’t forget to mention the Irish when it comes to letting housing bubbles wreak maximum havoc! I wonder if the same kind of crash which happened there will happen here?

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  • People/Corporations/Countries have borrowed too much money and their positions are in jeopardy.

    I think that lenders are demanding higher yields all round (eg USA – see 10 yr note) but especially Portugal (gasp!).

    This means building societies/banks will need to pay more to borrow from the market and costs of mortgages will rise. That could effect a HPC.

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  • People/Corporations/Countries have borrowed too much money and their positions are in jeopardy.

    I think that lenders are demanding higher yields all round (eg USA – see 10 yr note) but especially Portugal (gasp!).

    This means building societies/banks will need to pay more to borrow from the market and costs of mortgages will rise. That could effect a HPC.

    Reply
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