I got this video from Zero Hedge, which they got from Australia’s SBS TV’s Dateline program. Unfortunately, I can’t grab the video, but if you click on this link, it will take you to their site where you can watch it. Some of it we’ve seen before, but this reveals the vast scope of government bungling.
It proves the lie that China is a market-based economy. The Daily Capitalist has been saying for years now that China is still a command economy with elements of capitalism, that it has a huge property bubble, and that you can’t believe their statistics. As you will see in this video, the top-down commands from Beijing are executed but they have no basis in reality and the result is a huge waste of capital. I don’t know where analyst Gillem Tulloch got the number that there are 64 million empty apartments in in China, but if it is true, that is a staggering amount.
I guess that some wag will say that we had a bubble here too, yet we aren’t a command economy. But that is not quite the case. Our housing market is “gamed” by our government. From tax benefits, to tax credits, to subsidies, to bank incentives, to federal loan guarantees, to cheap Fed money, much of our housing market is not free market based. When you see vast misallocations of capital like this, it can only come from one source: government intervention in the market process.