this post was submitted on 16 Feb 2024
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And I would argue it's not enough. Banks made profits on the irresponsible loans, same as other investors and more corporate headpieces.
So no I'm not only talking about the EvUl CaPiTaLiStZ because apparently it's also in China.
And yes housing is for living in not for speculation.. as Japan also concluded some time ago.
True, I'd personally like to see them nationalize the whole thing and go full socialist altogether and not just market-socialist.
What? Japan's homeownership is even lower than the US's at around 55%, whereas China is around 90% even with its massive population.
Japan's is still for speculation, just very bad speculation.
Well in china also a lot of people ended up purchasing apparentments in the ghost cities as an investment.. so how do these count? .. Actual question, as this seems to be why the economy is in so much danger: since a lot of private people hold debts that are not covered by the actual value of the real estate it was used to purchase. So many people are insolvent at the moment.
And Japan was even worse (and is still bad, I only referenced it because there are so many parallels between china now and 80's Japan real estate in terms of artificially inflated prices). and a bubble that stretched everywhere. In the aftermath the government concluded that speculation with the housing market due to artificial scarcity was a main driver in the risks.. either good investment or affordable.