Building Boom, Building Bust: Headlines Tell the Story

“‘There’s a lot of inventory to be cleared, and towns to be filled up, therefore the investment incentive is not strong.’”
China’s Ghost Towns Haunt Its Economy, WSJ (Jun. 2018)

[On China’s 22.4% vacancy rate] “‘There’s no other single country with such a high vacancy rate…should any crack emerge in the property market, the homes to be offloaded will hit China like a flood.’”
A Fifth of China’s Homes are Empty. That’s 50 Million Apartments, Bloomberg (Nov. 2018)

A building splurge…ended in half-finished projects and a trail of angry investors from some of the country’s wealthiest areas.”
China's Building Boom Hits a Great Wall of Debt, WSJ (Feb. 2019)

"The whole entrepreneurial class is, as it were, in the position of a master builder whose task it is to erect a building out of a limited supply of building materials. If this man overestimates the quantity of the available supply, he drafts a plan for the execution of which the means at his disposal are not sufficient. He oversizes the groundwork and the foundations and only discovers later in the progress of the construction that he lacks the material needed for the completion of the structure. It is obvious that our master builder’s fault was not over investment, but an inappropriate employment of the means at his disposal." -Ludwig von Mises

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