STOCK BUBBLES

2012 real estate bubble will eventually burst – real estate, inflation – the machine tool industry

Inflation will end to China’s real estate bubble, most of the benefits of real estate will fall into the government’s pockets. Maori, the developers would be able to get a quarter. However, the money will then be used to buy land “What else can I do? I do not make money the factory can only put money into real estate, the” Ningbo, an entrepreneur that answered my question on the allocation of his funds. “Speculative real estate, my thanks to 30%. If the market was to die, I big deal for the house to the bank. If the shares, and accidentally will be 70% -80% loss.” When I asked him why he does not hold cash, he replied: “My friend bought a house last year, or 11,000 square meters, now has 20,000 of the bank interest. Too low. I want to catch up with my friend.” This is not an isolated cases. Recently, I went several times in Zhejiang, there are entrepreneurs constantly told me similar stories. Factories do not make money. Workers are hard to find, the monthly board and lodging packages are easy to find 2,000 workers. Five years ago, so plenty of people rushing to the treatment of dry. Although raw material costs lower than in 2007, but at least twice as five years ago. The worst is that fewer and fewer overseas orders, customers still stop bargain. Now businesses are too many, too few orders. Outflow of capital from the manufacturing sector into the real estate, is to inflate the main cause of the current Chinese real estate bubble. The 2008 stock market crash. Year period, A shares from November 2007 had fallen by three-quarters of the high points. Next up, just a bear market rally, not a bull market. View the current bullish stock market, but desperate people want the stock market rebounded, so stop preaching optimism. Read more comments site everywhere. Some sites look like without a doctor’s psychiatric hospital. Real estate market is the biggest show field. Major real estate market this year, sales may be exceeding 4 trillion, more than half of the national fiscal revenue. Most real estate income, would fall into the government’s pockets. Land transfer tax payments and various real estate sales prices to account for more than half. Maori, the developers would be able to get a quarter. However, the money will then be used to buy land. Although the Chinese government’s revenue is divided into many categories, but about half and real estate. China’s financial situation and like Hong Kong in 1997. This is so difficult to suppress because the real estate bubble. Accompanied by a weaker dollar, the real estate market started to recover in 2002. At that time, overseas Chinese in China want to buy the property, to reduce the dollar assets. This has become is a major driving force for market recovery. And overseas Chinese coastal city is closely linked to the first wave of the beneficiaries. In late 2005, when the Federal Reserve to raise interest rates to 4% above, the Chinese real estate bull stopped short. Second wave of real estate bull market, from banks to promote lending, especially mortgages. Financing real estate companies in Hong Kong, and foreign investment in real estate, is the second round of a major force behind the housing boom. Capital city of the benefit. When the land reserve and decentralized distribution favored by the stock market, the listed real estate companies and access to foreign capital to support the real estate business in the capital city to take land off a wave. Their money has supported the economic growth has created demand for real estate. In a sense, financial enterprises also helped push the real estate recovery. However, real estate companies now hope to cash in Hong Kong to stock. China’s real estate market is still a moving story of selling. They want to come in the final settlement before the realization of departure. The wave of real estate from the current bull market began in March 2009. This was more caused by the China’s own policy. Only the weak dollar helped to prevent capital outflows, pushing the capital surplus of asset bubbles. Buy a house in China, foreign investors, through the sub-prime crisis, the real estate bubble has to avoid fear.