China's Anti-Bubble Strategy: No Vacation Homes!
It's kind of cute to watch China figure out how to counter the massive bubble they're nursing over there. Don't trip, China, so long as you keep your shit pegged to our sad ass dollar I think you'll be just fine.
China’s government said it will curb credit for home purchases to reduce speculation and rein in surging real-estate prices.
The nation will “further restrict credit for the purchase of second homes and curb speculative housing investments,” Jiang Weixin, the housing minister, said in a statement on the ministry’s Web site today. He didn’t elaborate.
Premier Wen Jiabao pledged Dec. 27 to tackle “excessive” property-price gains in some cities. Prices across 70 cities rose at the fastest pace in 16 months in November, amid concern that record lending and inflows of capital from abroad are creating asset bubbles in the world’s third-biggest economy.
“They are trying to prevent a full-blown bubble,” said Lee Wee Liat, a Hong Kong-based property analyst at Nomura International Hong Kong Ltd. Lee sees potential bubbles in real estate in cities including Beijing, Shanghai, Shenzhen and Guangzhou.
Jiang’s statement, after an annual work meeting by the ministry, said China will add to stocks of low-cost housing in cities with high prices. The government will also crack down on property hoarding by developers and fake pricing and sales, and ensure that housing demolition is legal, he said.
This must be like fingernails on a chalkboard to Alan Greenspan, I bet he's melting as we speak just reading this. Can you believe it? A cap on speculation? The nerve of those people, it is the God given right of every Chinese person to have THREE homes AND a gas-guzzling SUV, damnit! The humanity!