View: China 70 City Home Prices in 18 Month Slump

China 70 City Home Prices in 18 Month Slump

CHINESE HOUSING GRINDS LOWER When it comes to net worth, what the stock market is to the US, housing is to China. Hat Tip to Zero Hedge. When the world is suffering from insufficient demand, however, clearly the problem we face today, income inequality and excess savings are the problem, not the solution. There may be plenty of good investments that are not being funded in the US, but the reason they suffer from lack of funding, unlike in the 19th Century, is not because capital is to scarce or too expensive. Capital is actually too plentiful, and this shows up in the speculative flows that have driven global stock and bond markets to unreasonable levels. It is weak demand or political gridlock that prevents productive investments from being made. Hat Tip to Michael Pettis ~ More charts at www.chpc.biz

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