SOS Dubai x 1000 = China

Peirs Morgan on Dubai....

• A handphone cost USD700K
• A car number plate '73' sold for USD2.5 million
• A 13,000 sf luxury apartment sold for USD17 million
• It cost about 500,000 pounds at The Palm and peaked at 3.5 million pound (in 6 years)
• A complex house a sky resort at -4 Celcius
• Highest building in Dubai, higher than highest building in the world by 40%

If this is not wasteful, what else can you call this.

Looking at the chart above, the price has "stabilized."

In 1990, it was size of 15% x Singapore. It doubled by 2000, and doubled again in 2005, which is 50% of Singapore size. The property burst in 2008.

Now back to James Chanos, he says China is Dubai x 1000 in 2009. Well, he was about 3 years early.

China right now looks like The United States in 2007. American consumption and speculation drove oil prices to $148 a barrel, copper was just under $4 a pound, and the stock market was surging.

MyView

All bubble always come to an end, a bitter end. It is simple, it is pure legalised gambling under the pretext of "a shelter over your head." Thanks to participation of all parties in the game. You need developers, architects, contractors, valuers, banks, and of course, the gamblers. Everyone is feeding each other with good news for 8 years, then, poof. Can this happen to China, it is almost certain, it is a matter of magnitude and timing. Same with HK, Singapore, Malaysia (certain pockets).