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When It Comes To Net Worth, This Is The Main Difference Between China And The US
Ever wonder why for the US, it is all about reflating the stock market bubble in order to boost the "wealth effect", if only for a small portion of the population?
Or, for that matter, why in China where the Shanghai Composite has gone absolutely nowhere since the Lehman crash (and certainly isn't up some 200% unlike the liquidity-supercharged S&P 500), it is all about preserving the sanctity of the housing bubble?
Then the following chart should make it all clear.
As we reported earlier today, in the US it is all about (record) financial assets. So much so, in fact, that financial assets as a percentage of total household assets have never been higher at 70.3%, which also means that real estate as a percentage of total is as low as it has ever been.
Meanwhile, in China few households care as much about financial assets (the ones that do are largely a part of the Politburo or the ultra-rich oligrachy). Instead, the largest Chinese household asset is Real Estate, which at 74.7% of total household assets, is by far the most valuable asset that China's population has.
Said otherwise, while the US, the Fed, and in general the Western world, will happily keep reflating the financial system until it all bursts again, in China it will be all about reflating the housing bubble. And while so far the Fed appears in control of the S&P 500, trading well over 2000, in China - as reported earlier today - the housing market is in clear freefall, despite Beijing and the PBOC's best interests to levitate it. Keep a close eye on this bifurcation, because as the Chinese housing bubble goes, so goes the US financial bubble.
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america= paper assets
china= not so many paper assets....
and less all the time...
bitchez!
If no paper, then how do Chinese wipe their back sides?
They'll use defunct Benjamins and recycled American e-trade statements in the future.
Life insurance, disability insurance, and pensions are the reasons why the stock market can't and never will crash. This chart could also be labeled "Future US financial obligations as a % of household assets" vs "Present Chinese real estate value as a % of household assets"
Good thing they don't need to crash to become meaningless.
Ever hear of a Bidet?
with dollars
Chopsticks...but you gotta be pretty fucking good at it...like a Ninja
C'mon silly, chopstix are only for dingle berrys...
;-D
So converting a significant amount of my stock market holdings into some solid Missouri farmland make me more Chinese?
And given the ever increasing bubblicious, divorced from traditional valuation methodologies, fantasyland that are equities, that is probably a good thing.
I'm all for farmland, but why MO? The state gov is crazy and the cops are scary.
Any farmland away from where fracking is going on will be valueabe in the future.
Jay Nixon is indeed useless, Leftist trial lawyer scum, but the government and state attitudes in general are MUCH more liberty oriented and anti-federalist than much of the rest of the country.
Specifically, which MO cops are you referring to? They are, by and large, no worse, and in most cases much less intrusive than police elsewhere.
He just knows what the media told him about that town that was in the news for a month and infers that to be the whole state. Just like a moron would, I might add.
No, buying more disposable made in China crap from Wal-Mart makes you more American!
Dow Jones went nowhere nominally between 1966-82 but the economy grew. Imagine that!
Consumers and paper pushers.
"because as the Chinese housing bubble goes, so goes the US financial bubble"
Could someone explain in laymans terms why that is the case? Thanks
What is the correlation between the two?
Because everyone must get screwed, so the elitists can profit.
This piece makes way too many assumptions about policy and effects, and is pretty weak.
The only real connection between the two is interest rates, and even then it's more long rates for RE and a blend of rates for financials. The real China story is that most of the "wealth" was graft or theft. Capital and it's "owners" are eager to get the hell out.
"The real China story is that most of the "wealth" was graft or theft."
AND just exactly how is that any different, atleast in the last 100 years, than 'Murica?
Merica never had so many nations dependent on her.
chinese sell and or mortgage houses in china and use that to buy houses in the US and australia. all cash buyers. high real estate prices in china ensure that a big buyer of US residential property stays in the game. real estate market crash in china means those chinese people have no cash left. they either stop buying more US houses, some might even have to sell. we all know what happens to equities in the us when a major residential player withdraws from the market. ka-boom.
This doesn't happen either.
Florida: Teacher demonstrates strapon dildo in sex education class for 6th graders
http://wtfrly.com/2014/09/18/teacher-demos-strapon-dildo-sex-education-c...
O M G
Did you also know that kids are now smoking bedbugs to get high?
Lousy no good teacher...
She's using it all wrong.
I prefer the original one done by Monty Python.
http://www.youtube.com/watch?v=SNjcSF_OKFM
Proves teachers can make anything dull and boring.
Brilliant sketch.
edit: I used to be a teacher.
edit2: but never taught sex ed
edit3: or have any experience with strapons
edit3 being the most significant, I think.
edit3 got my upvote :)
Fake strap on story btw.
Just fyi.
Housing is not just to be looked at through the lens of location, but also through the lens of pricerange. With societies across the globe doing their best to make it a barbell of rich and poor (poor have the numbers, rich have the assets), ANYTHING that relies on averages or medians or any of those broad measures will give you a highly distorted perspective. These aren't shares of stock where they're all the same and move up and down together.
China is shit. They have scarce natural resources.
Their HR department would disagree.
Their peoples can cope better under adverse living conditions than the US. Without AC and WIFI, the average US citizen becomes a zombie.
The average US citizen is a morbidly obese zombie--who just happens to have an iGadget.
They are absoulte shit. These people selling the "China story" are full of shit. China depends on Russia and the U.S. for all the resources they're hoarding. But even hoarding will not save them; it is unsustainable. They are poor and always will be.
What poor Chinese people might look like.
These are the 10 most resource-rich countries in the world according to this 2012-list by 24-7 Wall St:
10. Venezuela
9. Iraq
8. Australia
7. Brazil
6. China
5. Iran
4. Canada
3. Saudi Arabia
2. United States
1. Russia
And in Russia they reinflate the Gas bubble. (You can't make this up).
And in Germany, the export bubble.
And the litany can go on and on.
The disease is one where people believe papering-over, finessing, or otherwise obscuring a problem is the same as solving it.
how many of those paper assets are held by the Gates class?
Remind me about how much was lost on real-estate in 2008. Both of those asset classes go to shit when no new buys show up.
paper goes up in smoke. real estate tends to stay functional regardless of "value". the stock market in the us can crash and you're all fucking homeless on the street. the property market in china can crash... yet everyone keeps a roof over their heads. questions?
You've never seen an unmaintained house then.... Or an empty city, unused for a decade. It's not worth a fuck, and in fact is an obligation. Costs money to knock that shit down you know.
One is only slightly better than the other in the global balloon about to pop
You can run but you can't hide
alot of people fail to understand that really only in america are stocks seen as the be all of wealth, almost everywhere housing / land or farmland and the old mutual fund and bond are seen as stores of wealth, As such greater care is taken not to completely destroy the market equilibrium of real estate by having almost nothing down mortgages. For those who want to know..I invest in income producing assets that either tangible assets or global leaning stocks (the more non-american the better), be it stocks or real estate.
scary
americans need a lessen in rights, and entitlements, a least for now when there is some sembulance of a constitutioal america, but waning very fast.
no matter what the democrats tell you to get elected, entitlements are not rights, and can be stopped, ebt cards, housing, energy assistace, unearned income cash rebates, i read the other day there're 90 federal govt. entitlements.
life insurance would stand a better chance of being a right, than ss disablity, or pensions.
ask the working 30-50 yr. olds whos payckeck is 10% less from paying into SS, and medicare medicaid. and you hear on the news from a very few these entitlements are going be broke in 10-15 yrs., some see the SS, and medicare, medicaid liablities of $96,000,000,000,000.00 as not that bad, and still campaign on them.