We all try to stay ahead of the fray. People speculate on when certain industries, fads, and even traditional products will meet their Tulip Mania artificial expansion that always precedes a ‘bubble burst’. In the late 90’s and into the new millennium, it was not difficult to find someone who was willing to say, “The real estate bubble will surely burst; it is just a matter of when.” Well, as we all know, ‘when’ occurred in the United States around 2007 and early 2008 when non-credit worthy Mortgagees (Borrowers/homeowners, etc.) started defaulting en-mass on subprime mortgage loans. The rest is of course history.
Might I chime in and offer the next Tulip Mania looming over the beautiful blue planet Earth: China’s real estate market. Ha! “Market” –if you can call it that.
Please enjoy the following Dateline video on China’s ghost cities:
What is your opinion?