Money and Finance
Property bubble is ‘major risk to China’ [H/T Marginal Revolution] (LINK)
- Prem Watsa's 2013 Shareholder Letter - Fairfax Financial
Link to: Prem Watsa's 2013 Shareholder Letter Signs of speculative excesses are everywhere – even though the U.S. economy is still very tepid. The world might muddle through as it did in 2013, but the grand disconnect between stocks and bonds, and...
- Morningstar Q&a With Ben Inker
Inker: The behavior of corporate profits in the U.S. for the last 10 or 15 years is weird. It doesn't follow a standard capitalist script. If you've got a situation where there is a very high return on capital, which there has been on average...
- Mark Hanson's Latest On Housing
“Effective negative equity” is central to my “structurally broken housing market in need of years of de-leveraging before a “durable” bottom can occur”, theme. I have been pounding the table over “Effective” negative equity for years and...
- Corruption Threatens China’s Future – By Edward Chancellor
Widespread corruption at the local government level remains a threat to China’s economic development. If stories are to be believed, Chongqing’s disgraced party boss Bo Xilai even used an anti-corruption drive to put the squeeze on local business...
- Why Some Housing Bubbles Remain - By Edward Chancellor
Housing bubbles appear pretty similar on the way up. Yet the aftermaths of recent real estate booms in the US, UK, Spain and Australia have been extremely varied. US home prices took a real hammering. The formerly hot housing markets of the UK and Spain,...
Money and Finance
Links
Larry Cunningham: Berkshire’s Distinctive Shareholders and Corporate Longevity (LINK)
Related book: Berkshire Beyond BuffettBarry Ritholtz interviews Sheila Bair (LINK)
Related book: Bull by the HornsThe Feynman Lectures on Physics, The Most Popular Physics Book Ever Written, Now Completely Online (LINK)
Property bubble is ‘major risk to China’ [H/T Marginal Revolution] (LINK)
Since 2008 land prices have increased fivefold, triggering corresponding asset price rises, but even as prices soared and supply mushroomed, demand for housing and office space pretty much kept up – until this year.
...
Until 2011, the market mostly saw supply shortages but today total floor space under construction is enough to satisfy well over four years of demand at a national level.
In some of the worst affected provinces, there is enough supply for more than seven years of demand.
More than 90 per cent of households already own at least one home and, for those urban households that own apartments, nearly 76 per cent of their assets are in real estate, according to Gan Li, director of the Survey and Research Center for China Household Finance.
Mr Gan estimates that China’s existing housing stock is already more than sufficient for every household to own their home but developers are still supplying well over 15m new units a year.
- Prem Watsa's 2013 Shareholder Letter - Fairfax Financial
Link to: Prem Watsa's 2013 Shareholder Letter Signs of speculative excesses are everywhere – even though the U.S. economy is still very tepid. The world might muddle through as it did in 2013, but the grand disconnect between stocks and bonds, and...
- Morningstar Q&a With Ben Inker
Inker: The behavior of corporate profits in the U.S. for the last 10 or 15 years is weird. It doesn't follow a standard capitalist script. If you've got a situation where there is a very high return on capital, which there has been on average...
- Mark Hanson's Latest On Housing
“Effective negative equity” is central to my “structurally broken housing market in need of years of de-leveraging before a “durable” bottom can occur”, theme. I have been pounding the table over “Effective” negative equity for years and...
- Corruption Threatens China’s Future – By Edward Chancellor
Widespread corruption at the local government level remains a threat to China’s economic development. If stories are to be believed, Chongqing’s disgraced party boss Bo Xilai even used an anti-corruption drive to put the squeeze on local business...
- Why Some Housing Bubbles Remain - By Edward Chancellor
Housing bubbles appear pretty similar on the way up. Yet the aftermaths of recent real estate booms in the US, UK, Spain and Australia have been extremely varied. US home prices took a real hammering. The formerly hot housing markets of the UK and Spain,...