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Is This How China Will Deal With Its Massive Mal-Investment?
There is no doubt that China's massive credit-fueled expansion has created the largest mal-investment boom the world has ever known (no matter how much anticipated urbanization or consumerization one really believes in)... so we wondered, how will they deal with this problem? Perhaps the following creative destruction is necessary...
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There is way to much shit going on to keep track of....I have seen this video before...WTC7...oops.
The guys who did WTC7 were professionals. Much better job.
Shovel ready demolitions.
You didn't demolish that.
We are all Schumpetearians now.
Including our president... who forgot the creative part, I hear tell
Unfortunately, some of us are Klugans.
Oh shit... I didn't think of that....
Watch out BEROW! The BIRUDING is FAWRING!
So... same as Detroit, only much faster and organized. Bullish.
Eventually real people will live in those units. Better to stimulate via infrastructure than with "Market" bubbles which, when they pop, leave nothing behind.
I saw Dr Zhivago. If China was communist then those buildings would NOT be empty. (errrr, referrring to pre-demolition).
How can any society justify homeless people plus empty houses? Guess we just gotta wait for the tension to build.
In much of the world, there are probably a lot of people who are homeless purely out of poverty. In the west, many of the homeless are mentally ill and/or addicts, so providing them with a free home would simply result in that home being gradually destroyed.
While it is true that there are a lot of mental people out there that would just destroy any home that was given to them, there are also a lot of poor people who wouldn't.
For the latter, someone should tell them that all they have to do is borrow a bucket load of money, buy TEN or FIFTY houses, call it some kind of "real estate company" and go IPO! Poverty and bankruptcy is for poor people. For everyone else, "borrow and IPO"!
They must have taken an "urban development" clue from Detroit...
"Police no where to be seen."
Yup. That's China
Police was right there, at the end of the video... all 4 of them.
They were actually hiding down the street in Wei Tu Phat's dumpling eatery... they came out after the dust settled. Be careful in Shenzhen and Guangzhou ... it's gotten mighty dangerous there at night and as the man says above, I have never even seen a cop in the shopping areas of either of those areas.
Luckily, the streets in general...overall...are pretty safe in China but still got to be careful since their crime is on the rise. Japan, Taiwan, and South Korea are still incredibly safe any time, night or day from my experience.
Best part about getting rid of a building is you're left with a place to build a building.
/sarc
Best part about getting a building built is you're left with another place to build once you get rid of that building.
Just after you finish getting rid of one building you want to get rid of another.
That way your demo crew stays at the top of their game. You don't want to give too much down time for them to get rusty and not take proper precautions.
Don't drive for at least 1/2 hour after getting rid of one.
After watching that, I understand a little more the mental illness that is China.
Interesting you say that cuz the illness must've been contagious...
http://www.zerohedge.com/article/cnbc-video-let%E2%80%99s-bulldoze-forec...
"They'd rather throw people in the streets and bulldoze the homes than work out a solution.. "
... but DON'T you use plastic bags or incandescent light bulbs becoz it is baaaad for the ENVIRONMENT!!!!
Oh yeah...
True dat, but at least in the orient, madness is somewhat random and unexpected.
With India, it seems to be baked into the landscape.
You'll never understand the Oriental mind, and if you did, you'd realize it wasn't worth the trouble ---
Rudyard Kipling
Have you yet analyzed the ticking time bomb that is the US?
Red rivers, smog, tainted baby formula....a little bit of expired meat can't be that bad.
Melamime in the baby formula was to raise a generation of fire proof soldiers, don't 'cha know.
http://www.youtube.com/watch?v=iAavaZqDaXE
I thought they were just trying to turn their skin white...
No worse than pink slime and massive daily doses of GMOs. Same difference.
"There is no doubt that China's massive credit-fueled expansion has created the largest mal-investment boom the world has ever known.."
Damn I was only away for an hour or so when this was still our shitshow. So this just happened?
If you blow it up they will come! Err what?!
You'll never see one of their newer buildings demolished like this. They're going to fall down on their own.
Did the Chinee build the twin towers, too?
We got aircraft of all sizes, from Foxbats and Cessnas to 747s and Airbuses, for your little shack to your greatest super-skyscraper.
Just dial 1 - 911 - DemosRUs
No Cop, no closed streets. It wasn't a demolition.
It was a mid day celebration of wealth!
Year of the fire cracker!
Next year is of "Dust cloth"
Yeah, I tend to agree. The cops who show up afterwards look surprised.
It was a demolition, they just didn't feel like paying bribes to the cops for traffic control and for "permitting". Hurts the bottom line.
"All clear, Mr. Chou?"
"Clear as it's ever going to be. Blow it."
You mean "Pull it"
The Chinese are good with fireworks.
History eraser in action.
starting nonstop warz killing millions of people worldwide seems more barbarous. the chinese way of creative destruction seems much civilzed to me.
This video is part of Krugman's Keynesian porn collection!
Quite stimulating.
If you remove the windows first, the nasty Austrians can't call this a broken window.
Is that what's happening to our county? Yep! we are crashing!
There must have been a fire in that building. I guess that they forgot to tell you that.
If Krugman leaves Princeton he'll be appointed Department Chair at Peking University.
Blowing up this building, with no warning, gives new meaning to "Peking, DUCK you sonofabitches" !!!
What happened? Did it get hit by an Airliner?
Short materials. Longer fuses
Mal-investments usually lead to debts being called in.
Then it is game over.
Good bye, CHINA!
how dare they do a demo like this...
They should be more like America.
$1,000,000 in permits
$1,000,000 in required pre work
$100,000 in day of demo security
disrupt the entire 12 block radius and shut down that entire section of the city for 12 hours...
....or, they could be like China, and just do it without all the BS. I vote for 'be more like China'
Don't see the problem here, it was fenced off and they brought down the building in a controlled way. I guess if you're always on the look out for things to bitch and whine about this might pop up though.
I saw this several times when I lived in Shenzhen--next to my apartment a new shopping mall that had been completed for only a few months was demolished and replaced...so strange.
Fast growth tends to mask flaws and weakness within a system, and China has been growing like a weed for years. To make things worse many of the investment decisions were driven by politics and often influenced by corruption. This has created massive overcapacity. Money has been poorly allocated and often shoveled into deep holes like ghost cities and bridges to nowhere.
Currently a 6.6 trillion dollar spending spree used as stimulus to combat global economic slowdown is coming back to haunt China. This has greatly expanded credit and created huge overcapacity during the past five years. A massive debt crisis now looms in the offing. At stake are trillions of yuan in bank loans that companies producing everything from ships to steel to solar power are struggling to repay as the world’s second-largest economy in in the mist of a major slowdown and the weakest annual growth since 1999. More in the article below.
http://brucewilds.blogspot.com/2013/11/china-land-of-overcapacity-and-de...