China home prices up in December, investment growth slows

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MikeBarnett wrote:

One element in China’s home prices is a five year plan to build 46 million low-cost housing units by 2015 that could house 138 million Chinese or 10% of the population. 2013 is the third year of the plan, and its main effects should be felt by June or July, the middle point of the program. In addition, the plan offers jobs with paychecks to workers who become customers and tax payers, so the economy and the government’s tax revenues increase while costs for consumers remain stable or are reduced.

This helps China avoid the ruinous US policies that led to the US housing crash of 2008 to the present. The US let too many unqualified home buyers take out too many unsafe mortgages that caused artificial home price rises insured by too many unsound mortgage backed securities that could not pay the massive insurance claims when the criminal US property schemes began unravelling. By keeping excess speculators out of the market, China avoids artificial price increases that make no real, physical improvements that are the only legal reasons for price increases.

Jan 18, 2013 3:52pm EST  --  Report as abuse
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