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Like bridges to nowhere
Friday, November 13, 2009
This YouTube video (hat tip Sam) has been making the rounds over the last 24 hours and for good reason - it paints an entirely different picture of the 2009 China growth story than the one that most investors in foreign stocks probably believe at the moment.
Favorite line: "Nobody's ever really lost money on real estate in China - not on a consistent basis. So, people look at that as a very safe investment".
You would have been correct saying the same thing in the U.S. just a few years ago.
2 comments:
But you forget - it's different there. If anyone loses money on real estate in China, they can be taken out and shot. I predict this will inspire continued investor confidence.
I think this illustrates (indirectly at least) how planned economies can't work. You can built infrastructure and homes but nobody will live there w/o jobs. Nobody will start businesses there w/o customers or laborers.
The same follows for healthcare. The supply/demand mix of doctors, equipment, facilities, and patients is far too complex for someone to orchestrate from above. The market, where millions make decisions, is far better.
Our problems lie in mixing govn't control (fascism) with free markets, and assuming the problem is the free market part of the equation.
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