Comments by "Louis Giokas" (@louisgiokas2206) on "Loan Defaults, Housing Prices Plummet, No Buyers in China! Many Rush to Buy Thai Properties" video.

  1. "Auction houses at lower prices than what they're worth." That is a totally bogus statement. This shows a total lack understanding of what a market is. Supply and demand! Supply and demand! The price of anything is what people are willing to pay. There is no standard or natural price. Even on this channel you give lots of examples of factory owners taking orders at a loss, because that is what the market will bear, and they want to keep their factory open. They are hoping that in the future demand will again rise and they can make up the losses. If not, they will go bankrupt. Their other option is to become more efficient, but that takes capital. In some cases, it may not be possible. So, the price is the price customers are willing to pay, not what some government official says it is. Heck, look at the price wars in the EV market. I once was taking a graduate business course and one of the main modules was on pricing. There are many pricing strategies. I could go on and on with examples, but I will spare you. In the case of housing in China the government has indeed set prices for new homes. They also made it so that real estate was one of the few investments that were open to the average person. They also artificially inflated the prices to entice people into buying. Now they have massive amounts of housing stock and not enough people who can afford it.
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