China's housing bubble is losing air

[JayAtl]

^^^ prices fall down by 40% that's not a bubble busting for him

 

[Shardul.....the lion]

^^^ prices fall down by 40% that's not a bubble busting for him [/QUOT

Bubble bursting is next thing, he is saying their is no bubble in real estate.

I think he is strong member of cent party. Just defending CCP without any point, ignoring facts which even others are acknowledging.

 

[beijing consensus]

your private consumption is only 30 percent of economic activity. it needs to be at 50-60% to overcome the exports and FDI dependency. Now make your next one liner that is a mjority of posting history here" China will rule, Us will go down, India is poor"

lol ur economic knowledge is zero.

that 37% of consumption as a % of gdp is the past stock of consumption as a % of gdp.
it has no relation to current consumption, current consumption trends is measured by the rate of consumption.

japan has consumption as a % of gdp close to 60% but japan is not a consumer driven economy because its rate of consumption is negligible. its driven by exports as japanese consumers are not spending much to drive current growth by consumption.

even though chinese consumption as a % of gdp is only 37%, chinese rate of consumption is rising 17-18% per year.
that means consumption is contributing a major part to the chinese current growth.

 

[JayAtl]

lol ur economic knowledge is zero.

that 37% of consumption as a % of gdp is the past stock of consumption as a % of gdp.
it has no relation to current consumption, current consumption trends is measured by the rate of consumption.

japan has consumption as a % of gdp close to 60% but japan is not a consumer driven economy because its rate of consumption is negligible. its driven by exports as japanese consumers are not spending much to drive current growth by consumption.

even though chinese consumption as a % of gdp is only 37%, chinese rate of consumption is rising 17-18% per year.
that means consumption is contributing a major part to the chinese current growth.

Private consumption accounts for only about 36 percent of China’s GDP. That’s about half of what it is in the United States. It’s almost two-thirds of what it is in Europe.

the right levels in terms of GDP would be 50% at a minimum for china



China has to be less reliant on export and fixed-asset investment to drive their economy, they have to sooner or later become more reliant on consumption spending. savings rates are the highest recorded. If rising consumption forces the relative savings rate down just 4 or 5 percentage points – with no change in investment levels – China’s trade surplus would be wiped out

 

[beijing consensus]

do less of copy and paste and more of understanding....

Private consumption accounts for only about 36 percent of China’s GDP. That’s about half of what it is in the United States. It’s almost two-thirds of what it is in Europe.

LMFAO!

ur beyond help kid.

i just told u the difference between consumption as a % of gdp(past stock of consumption) and rate of consumption(current consumption increase, which is the one that matters for current growth).

no wonder the entire indian economy is on the verge of collapse because ur knowledge of economics is extremely limited.

 

[JayAtl]

LMFAO!

ur beyond help kid.

i just told u the difference between consumption as a % of gdp(past stock of consumption) and rate of consumption(current consumption increase, which is the one that matters for current growth).

no wonder the entire indian economy is on the verge of collapse because ur knowledge of economics is extremely limited.

Okay - lets try this a different way for the last time:

your rate of consumption wont help you... is what I tried to explain ... its is artifically being pumped up but becaue you guys have such high rate of savings...as a culture . it wont sustain itself through artifical pumping.( subsidies your govt is throwing)

here is slightly old article but it explalins it in baby steps...which would help you better

http://www.europeanbusinessreview.com/?p=1195

 

[rcrmj]

lets see will China's economy collapse first due to the 'collaping houseing price' or India's economy collapse first due to its pony economy stracture and simpleton mind

 

[beijing consensus]

Okay - lets try this a different way for the last time:

your rate of consumption wont help you... is what I tried to explain ... its is artifically being pumped up but becaue you guys have such high rate of savings...as a culture . it wont sustain itself through artifical pumping.( subsidies your govt is throwing)

here is slightly old article but it explalins it in baby steps...which would help you better

China

omg u are totally clueless.

having a high savings rate and at the same time having a high rate of consumptin is the perfect balancing act.
that shows china is doing it perfectly.
the objective of savings/consumption is to maintain as high a possible savings rate and at the same time increase rate of consumption.

savings are needed for capital formation where businesses use savings to invest.

dude just stop ur clownish posts, ur exposing urself as an economic noob.

and ur cut and paste from articles is hilarious and obvious, u dont have ur own economic knowledge kid.

 

[xataxsata]

Yes china's bubble is on the brink of busting.

 

[Pakchina]

Its preferable to have housing bubble losing air and ghost cities than being homeless and deprived of toilets. Indians have been deprived of toilets and use to defaecate and pee on public streets, buildings, trains etc in front of disgusted but amused Western tourists. The myth of the Chinese housing bubble bursting has been around since 2008, and each day it has been predicted that it would burst, in 2011 from January to November we have been hearing this and the Chinese housing bubble is still resisting. Similarly the myth of Chinese economy collapsing is around since 1989 and India surpassing China is around since 2003. But what we see today, India is still lagging behind China despite Western economic backing and China's economy is now the second most powerful despite the world recession and the Chinese housing bubble still not bursting despite all the speculations and actions by western financial gjurus and speculators.

 

[anonymus]

omg u are totally clueless.

having a high savings rate and at the same time having a high rate of consumptin is the perfect balancing act.
that shows china is doing it perfectly.
the objective of savings/consumption is to maintain as high a possible savings rate and at the same time increase rate of consumption.

savings are needed for capital formation where businesses use savings to invest.

dude just stop ur clownish posts, ur exposing urself as an economic noob.

and ur cut and paste from articles is hilarious and obvious, u dont have ur own economic knowledge kid.

Since it is useless to argue with chinese using sophisticated economic logic since their high IQ makes them rise above both economics and physics i would bring out the stupidity of above statement with simple example.

if you earn 100yuan how are you going to spend it.Either you are going to save it and put it in a bank or invest it or you are going to spent it on buying something.

How could you do both at the same time?

 

[FairAndUnbiased]

An asset bubble has 2 parts. Leveraged speculation and mispriced assets. One is not enough.

Educate yourselves. This is why RBI is losing billions per day while PBOC is making billions per day.

 

[dubstep]

Since it is useless to argue with chinese using sophisticated economic logic since their high IQ makes them rise above both economics and physics i would bring out the stupidity of above statement with simple example.

if you earn 100yuan how are you going to spend it.Either you are going to save it and put it in a bank or invest it or you are going to spent it on buying something.

How could you do both at the same time?

Simple, you saved a million then the bank spend a million. If you keep your money in your own pocket, the bank can't spend a dime.

omg u are totally clueless.

having a high savings rate and at the same time having a high rate of consumptin is the perfect balancing act.
that shows china is doing it perfectly.
the objective of savings/consumption is to maintain as high a possible savings rate and at the same time increase rate of consumption.

savings are needed for capital formation where businesses use savings to invest.

dude just stop ur clownish posts, ur exposing urself as an economic noob.

and ur cut and paste from articles is hilarious and obvious, u dont have ur own economic knowledge kid.

Why don't you just say that Saving/Consumption(spending) = 1