Home » 2013 » March » 07

Daily Archives: March 7, 2013

Search within blog:

Subscribe RSS feed

March 2013
S M T W T F S
 12
3456789
10111213141516
17181920212223
24252627282930
31  

fools, and greater fools

’60 minutes’ investigates the recent development of Chinese housing bubble in the following video.

Following my previous posts (here, here, here, here and here) on China’s housing bubble, I am now re-organizing my thoughts, and starting to work out a formal economic analysis on China’s housing bubble.

Specifically, I will address the question if the current housing price in China can be justified by the story of China’s fast economic growth coupled with her fast industrialization and urbanization. My initial analysis clearly says no. I call this a ‘fools-and-greater-fools’ theory.  In history, great bubbles always came with even greater stories.  China is no exception.

Will keep you guys posted.