Investor confidence in China’s troubled property sector has been rocked again this week by reports that one of the country’s largest private building conglomerates missed interest payments on two bonds.
Houses in the western world got too expensive due to these facts:
Inflation, leading to devaluation of the currency while the wages have pretty much stagnated
Lack of construction, or overcrowded cities that don’t have anymore spaces.
In China they’re living something similar to the 2008 crisis. Too much construction, too much debt and companies are starting to default. The bubble will burst when the government starts having trouble helping those defaulting companies.
Houses in the western world got too expensive due to these facts:
In China they’re living something similar to the 2008 crisis. Too much construction, too much debt and companies are starting to default. The bubble will burst when the government starts having trouble helping those defaulting companies.
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