Author Topic: Chinese Rare Earth Element Implications... / NY Times News Article  (Read 3502 times)

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Offline ghostrider80811

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Re: Chinese Rare Earth Element Implications... / NY Times News Article
« Reply #15 on: August 26, 2011, 05:50:08 PM »
Underbidder,


I read speculation and to increase Chinas GDP but who knows?  Anyone care to chime in?  Also, exchange and babycyt23 is right when Chinese buy real estate, they pay mostly all cash, even in Hong Kong.  My cousin lives in Central HK and he's renting in hopes the real estate will crash since it went up so fast in such a short time.  The amount of money he spends on rent in central can get him a nice mansion in TX.  He told me some of his buddys spend 10-15Gs USD/month for rent!

Offline exchange

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Re: Chinese Rare Earth Element Implications... / NY Times News Article
« Reply #16 on: August 26, 2011, 05:58:04 PM »
Underbidder,
The amount of money he spends on rent in central can get him a nice mansion in TX.  He told me some of his buddys spend 10-15Gs USD/month for rent!

and that is why we buy Chinese coins, the amount of money available on that side of the world is astonishing. Add to the equation a much higher population than Europe and the US combined and you got some serious demand.

exchange

Offline BChung

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Re: Chinese Rare Earth Element Implications... / NY Times News Article
« Reply #17 on: August 26, 2011, 10:13:00 PM »
Underbidder,


I read speculation and to increase Chinas GDP but who knows?  Anyone care to chime in?  Also, exchange and babycyt23 is right when Chinese buy real estate, they pay mostly all cash, even in Hong Kong.  My cousin lives in Central HK and he's renting in hopes the real estate will crash since it went up so fast in such a short time.  The amount of money he spends on rent in central can get him a nice mansion in TX.  He told me some of his buddys spend 10-15Gs USD/month for rent!

Now you know how hard my life is..... the amount of money that I will spent to buy or rent a home in HK is ********* Ridiculous..... it has always been a myth that HK is a low tax heaven. The Government have simply sell/rent their land AT high price in the first place making it more or less like a pre tax on everyone.

I think HK property is in a bubble already, as not only CHinese buyers are buying, everyone is buying. There are end users mortgaging at 5% down payment although they make up a small percentage, and they are mostly young couples around my age. The rise in price is mostly due to money finding places to go as the HKD is peg to the USD (IMO a Curse while many Locals is too scare to change)hot money have been flowing in since the FED keep on printing money. Not only the FED, but the Chinese Hot money have also been flowing to HK as its more convenient for money in Mainland China to flow to HK. 

Regarding the Chinese Ghost cities they are mostly bought by  people who can afford them. The close capital system in China have been forcing money to treat Ghost cities like gold. If the property market does crash I see Ghost Citites being lively cities because there is a demand as a matter of a fact a huge demand but the price is keeping most chinese away as they simply cant afford it. If prices crashes the fundamental demand is there to support it.

Also not the whole China is experiencing a property bubble. eg. Zhong Shan a 2nd - 3rd tier City in Guangdong does not experience the same ridiculous prices as shenzhen and Guangzhou. One can buy an place for around 0.5 RMB MIl (0.35 MIL RMB for older not so convenient places) instead of 2 RMB Mil + (older less convenient maybe around 0.8 RMB Mil min). SUre the wages are higher in Gz and SZ but the its not 3-5 times higher like the property price.
 You can be a store sales for 2000 RMB in ZhongShan while in SZ and GZ you can get a monthly wage of 3500 - 4000 RMB only.  Personally I think SZ is a special case as many HK people go there to buy property - Half or a Third the price, twice or triple the size with a much much better view. (which I am persuading my GF to drop her typical HK people superiority complex when they compare themselves to mainlanders)

As I mentioned earlier the Beijing Leadership is too Chicken to do anything right unlike the former premier Zhu Rongji who close down zombie state own enterprises and pop the last property bubble to bring the Chinese economy back on track. If property prices continue to rise than the burst will be serious bring serious pain IMO.

Offline comeaux

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Re: Chinese Rare Earth Element Implications... / NY Times News Article
« Reply #18 on: August 27, 2011, 01:36:25 PM »
You can't spend and spend and at the same time buy a house, its either one or the other. Most Americans chose to do both.
exchange
I would say "many" ... not "most"  :001_smile:

There are still alot of reputable, ethical & hardworking Americans such as myself who have worked very hard our whole life and who buy our homes as we agreed to when we made/signed the commitment to do so.

There is so much propaganda on TV nowadays and all the silly reality shows that unfortunately it paints a broad brush and stereotypes ALL/MOST Americans as behaving unethically and living beyond their means when it's actually only a small percentage of the population.

Offline badon

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Re: Chinese Rare Earth Element Implications... / NY Times News Article
« Reply #19 on: October 15, 2011, 10:06:05 PM »
My impression has been that it is the majority. It seems to me that only a small fraction of people are fully solvent. Most of those people are homeless, with no debt, and no assets :)