Comment: West has lost its argument as keeper of antiquities heraldnet.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from heraldnet.com Daily Mail and Mail on Sunday newspapers.
Here is a scenario: You buy a preconstruction apartment and start paying the mortgage before it is complete. The developer halts the project and has defaulted on its debt, and it looks like the property might never get built. You hear of buyers elsewhere who have stopped making their loan payments. The government has stepped in to ensure builders have money and is considering giving mortgage borrowers a temporary holiday. What would you do?
This encapsulates the dilemma for the Chinese government in coming to the aid of buyers in stalled housing projects. An effort to short-circuit the spread of mortgage
The cartoon character running off the edge of the cliff makes a useful metaphor for the psychology of overvalued markets. As long as Wile E. Coyote does not realize there is no ground beneath his feet, he can keep running in midair. When he looks down, he plummets.
Although the world of physical matter does not behave this way, financial markets sometimes do, and it could be a helpful lens through which to view the situation confronting China.
For the past 18 months, Chinese authorities have been trying to reduce property prices, leverage and the economy’s dependence on the real-estate industry.
Is capitalism just a phase for communist China? taipeitimes.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from taipeitimes.com Daily Mail and Mail on Sunday newspapers.