Comments by "D W" (@DW-op7ly) on "Bloomberg Scoop: Chinese Government Considers Buying Unsold Homes to Ease Glut" video.

  1. Last few years sophisticated foreign investors were propping up these property developers, who were building higher end homes and not the affordable homes a few hundred million rural migrants will still need, as they migrate to the cities So they let the sophisticated foreign investors and property developers take a hit... And will probably give these unsold homes to these rural migrants at a discounted price
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  2.  @waltertodd4479  it’s really not a hard concept to understand Property Developer gets a influx of cash What do you think they do with it? They do what they do best build In China in 2008 around 70% of the people in their real estate markets were buying their 1st homes in their cities By 2018 around 70% of the people in their real estate markets were buying their 2nd and 3rd homes in their cities That’s why you are hearing about problems with their property developers these days. Because back in 2010? Their Central Government started cutting of money flow to these developers. Thus why you heard about Shadow Banks and Underground Economy back then, that their Government had to come into to shutdown or regulate. Even then, It took them almost 14 years to get their overheated real estate under control Heck they were about to introduce a nation wide property tax, but then trump started the trade war in 2018 Why is their Central Government doing this? Because there are still a few hundred million poorer rural folk they still expect to move to the cities to join their more well off urban city folk countrymen. Problem is these property developers were building higher end homes, and not building the affordable homes these rural migrants will need In China Owning a home in the city you migrate to? Affects your employment, health, education and even marriage prospects don’t have a house you don’t get married Thus the common prosperity push and the crackdown on the overt displays of wealth in China Their Government probably figured out you disenfranchise the people at the bottom of your society they are the ones most likely to act out in protest
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