Friday, October 8, 2010
There's No China Housing Bubble? Seriously?
Sometimes I read headlines of articles and I instantly react. I don't even need to read the article to know that it's absolutely BS. That dude who wrote Blink, what was his name? Gladwell. Malcom Gladwell. Yea, I don't really like his books because they're written for 3rd graders. But he does make a point. People react based on instinct. And instinct is built on years of experience - so generally, instinct works better than thinking. Why? Because thinking adds emotion to the mix. And that's never good. Just think about your last argument. I'm sure emotion played a great big factor.
Back to my point. This is the headline: JPMorgan: There's no housing bubble in China (here). After my BS thought, I decided to read the article. Now emotion was involved, because I knew I wasn't going to believe what was written for 2 very important reasons.
1) Did we learn nothing about the economic ruin we're mired in? Big banks have way too much at stake to be honest, straightforward, and the least bit pragmatic. Imagine the reality of a housing crisis in China? What would that do to JP Morgan?
2) Just a few months ago, I read article after article about ghost cities in China. And the boom that was occurring there. Lest I remind you - these were ghost cities. (here, here)
Posted by Lefty at 8:23 AM