August 22, 2009
What Chinese authorities don't want you to see
"This is a seriously large building," says Hendry. "We're talking at least half a billion dollars to construct this thing. It's empty! Who is going to fill this thing? Who is going to pay the debt that that building is resting on?"
August 20, 2009
Great Mall of China isn’t so great
The South China Mall in Dongguan, China sounds good on paper. The holder of the title “World’s Largest Mall” is more than twice the size of the previous record holders, Mall of America in Minnesota and Edmonton Mall in Canada. The building includes nearly 7 million sq. ft. of space and is complete with 8,000 parking spots. It also features amusement park rides, themed outdoor areas, an indoor rain forest, and an artificial canal system.
But there is one thing missing … people
September 9, 2009
China Auto Sales Surge
Manufacturers and dealers have been offering price cuts on their vehicles, in some cases equivalent to a 5% purchase tax cut, to encourage consumers to buy larger models and meet sales targets, Mr. Zhang said.
Last week, a senior minister from China's economic planning agency warned of excess capacity arising in the next few years.
September 4, 2009
Wanted: Greater Fools To Support The Chinese Stock Market
After easy-money assurances failed to prevent a swoon in the Chinese stock market, one imagines the government is now happier than ever to get more liquidity pumping in.
The comment section of that last link is especially worthy of reading. CramerIsAssMonkey's (LOL!) comments led me to the following link.
August 31, 2009
UPDATE 1-Beijing's derivative default stance rattles banks
For banks that are hoping to sell more derivatives hedges in China, the world's fastest-expanding major economy and top commodities consumer, the danger goes beyond the immediate risk to existing contracts to the longer-term precedent that suggests Chinese companies can simply renege on deals when they like.
If you build it, they will come? Maybe they could try baseball fields on the roofs of the buildings?
ReplyDeleteGYSC,
ReplyDeleteField of Ponzi Dreams! ;)
Stag,
ReplyDeleteI have a dream - MLK
These days it's more like:
I have a ponzi scheme
Anyway, that piece about China unilaterally canceling derivative CONtracts is interesting and could have enormous consequences.
Everyone understands and agrees about the sanctity of contracts, but it seems clear that China feels Wall St. was pushing fraudulent deals. What a surprise that a sovereign creditor nation doesn't want to be bound to the negative consequences of fraud.
How many American debtors would like to be their own judge and jury?