The Bubble in China?
Two conflicting viewpoints about whether there is a real estate bubble in China: an interview with Stephen Roach, Morgan Stanley’s Asia Chairman and a post by Charles Hugh Smith, blogger. To me the data that Smith has marshaled sound a lot more plausible than Roach’s Malthusian endorsement of the Chinese property market. After all, even if there are huge amounts of Chinese, that doesn’t mean they can afford these properties. Again, I suspect that overaccumulation, identified by Marx as a critical failure point produced by contradictions inherent to capitalism, is at work here. I don’t understand what conventional “economists” just don’t get about this.
