Showing posts with label related-party transactions. Show all posts
Showing posts with label related-party transactions. Show all posts

Tuesday, December 22, 2009

Bubble Alert: $400/sq ft in Shunyi County, China

Forbes' Gady Epstein warns that the mother of all asset bubbles is building in China:
A speculative frenzy of borrowing and bidding up is at work. If and when prices crash, there will be hell to pay.

Signs of the times: government bureaucracies funding themselves by foisting debt on state-owned business enterprises; local governments raising capital by selling land at sky-high prices to corporations they own; and a People's Bank of China lavishing liquidity on the entire system in a way that makes Federal Reserve Chairman Ben Bernanke look downright stingy.