China’s real estate bubble

China BuildingsSource: China’s real estate bubble – CBS News.

China has been nothing short of a financial miracle. In just 30 years, this state-controlled economy became the world’s second largest, deftly managed by government policies and decrees.

One sector the authorities concentrated on was real estate and construction. But that may have created the largest housing bubble in human history. If you go to China, it’s easy to see why there’s all the talk of a bubble. We discovered that the most populated nation on earth is building houses, districts and cities with no one in them.

This article got my attention because of two different items.  One is how our prosperity did not disappear; it was simply moved to another continent. The second is that I recently posted the words that started ultra-conservatism in our country. Those words were “Government is not a solution to our problem, government is the problem.” from Ronald Reagan’s first inaugural speech. He ushered in the feeling in this country that government serves no purpose and should just get out of the way of the private sector and everything will be alright.

Obviously China has taken the exact opposite track. Their government controls almost everything in that country. To see them go from number twelve to number two in less than thirty years is nothing short of amazing. But of course their prosperity is coming at the expense of the American worker as our corporations continue to move jobs to their country.