Prelude to Economic Disaster: Billionaire Liquidates All..

[neilgin1]

(I couldn't let this one bypass RC, at least ya'll don't think i'm some depressing, bunkered up nut, like my whole family)

"Prelude to Economic Disaster: Billionaire Liquidates All Real Estate Ahead of Crash"
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If you were to contact a real estate agent in any major market today they’d likely advise you the market is so “hot” that if you intend on purchasing property you’d better be prepared to act fast. They’ll adamantly point out, contrary to reality, that the housing market has recovered, available inventory is dropping, prices are rising, and they can only go higher from here.

But if you’re paying attention to what’s happening around us, and not just with our own economy here in the United States, then you’d likely have noticed that while many Americans are flying high on hopes of change and recovery, there is an economic disaster of unprecedented scale in the making.

First, we know that the third largest economy in the world, China, is going through a massive credit crunch as bad loans there have soared to near all time highs, meaning that loans are quickly becoming non-existent and credit markets are now frozen. This means that no one is going to be building ghost cities and empty malls in the Peoples’ Republic again any time soon. Moreover, it means no more easy cash. We know what happened in the United States and the rest of the world when the last credit crunch hit.

Second, as Sovereign Man points out, the richest man in Asia Li Ka-Shing (their version of Warren Buffet or Bill Gates with a reported net worth of $30 billion) has rapidly liquidated his real estate holdings and is existing the market as quickly as possible.


Here’s a guy you want to bet on– Li Ka-Shing.

Li is reportedly the richest person in Asia with a net worth well in excess of $30 billion, much of which he made being a shrewd property investor.

Li Ka-Shing was investing in mainland China back in the early 90s, way back before it became the trendy thing to do. Now, Li wants out of China. All of it.

Since August of last year, he’s dumped billions of dollars worth of his Chinese holdings. The latest is the $928 million sale of the Pacific Place shopping center in Beijing– this deal was inked just days ago.

Once the deal concludes, Li will no longer have any major property investments in mainland China.

This isn’t a person who became wealthy by being flippant and scared. So what does he see that nobody else seems to be paying much attention to?

Simple. China’s credit crunch.

But Li Ka-Shing isn’t the only one bailing. Luxury real estate investors are unloading their real estate assets as well in an effort to raise cash and not be the last one holding a dead asset. For all intents and purposes, the music in China has stopped:


Cash-strapped Chinese are scrambling to sell their luxury homes in Hong Kong, and some are knocking up to a fifth off the price for a quick sale, as a liquidity crunch looms on the mainland.

On the domestic front we’ve seen stock markets drop a fairly significant level in recent weeks. So much so that company’s hoping to launch new IPO initiatives have chosen to just sit this one out as they are worried that investors are running out of money to help fund their operations.

You wouldn’t know that, of course, because mainstream media pundits like Dennis Kneale continue to sell Americans on the notion that we’re in a robust recovery:


Yet the economy, both locally and globally, is in vastly better shape than it was when we took that terrible tumble, down to Dow 6,800 in March 2009.

Americans have cut back on debt, and so have companies.

Karl Denninger of the Market Ticker calls this one what it is – a complete lie – and points out that we are nowhere near cutting back on our debt.


(rest of the article: http://www.shtfplan.com/headline-news/p ... h_04182014

[beauanderos]

Glad to see you posting again... you extremist nutjob hermit

I was just about to PM you to see what you've been up to, thanks for the link

[68Camaro]

Interesting info Neil. So what are they moving their cash into?

[68Camaro]

Interesting info Neil. So what are they moving their cash into?

And who is buying this stuff?

[Computer Jones]

(I couldn't let this one bypass RC, at least ya'll don't think i'm some depressing, bunkered up nut, like my whole family)

"Prelude to Economic Disaster: Billionaire Liquidates All Real Estate Ahead of Crash"
(rest of the article: http://www.shtfplan.com/headline-news/p ... h_04182014

Good article.
PS - Don't forget to rotate your MRE's.
PPS - There is no such thing as too many rounds!

[theo]

Interesting info Neil. So what are they moving their cash into?

Considering the primary concern seems to be a credit crunch probably cash or cash-equivalents, with the idea of snapping up bargains once the market corrects. Somebody that wealthy is probably well-connected with the Chinese government, which makes his sudden exit from the real estate market all the more relevant.

[neilgin1]

Glad to see you posting again... you extremist nutjob hermit

I was just about to PM you to see what you've been up to, thanks for the link

You are welcome OB....I been ok I guess. winter just really broke a couple of weeks ago.

you know that saying about "clichés"?......in this case, "cabin fever"?...oh marone! mingay!

IT'S TRUE!!!

we had ...I lost the hard count, but it was like 90 consecutive days of subzero.....that snow covered the ground the first week of Nov, and wasn't melted until the end of March.....I THINK, everything's this swirl to me, nobody up here, ever seen a winter like this last one.

but I guess that's why only 20,000 souls live in an area the size of two Manhattans.

How about that Ag?...wow, its a buyers market, with prices flatlining and what. But the premium aint flatlining!!...i'm talking about uncirc rolls of American 90%'ers....even some of the circ's, I gotta pat myself on the back....tell ya why? Remember how I THEORIZED (meaning hasn't come to total fruition) that the 64 Kennedy will be the Bellweather Coin of the 90%'s...post dollar? well, it seems to me, EVERY choice $10 face roll that come onto market had numerous bidders and traded 23 times plus....its like guys were laying in wait for them...in fact I think we are now seeing two things happening; we're getting a NEW wave of buyers in silver, guys that are just waking up to hard money.....and the veterans, like yourself, are ramping up purchases in this tranquil flatline.

I also noticed a LOT of choice Washington quarter rolls being thrown into the market....more than ever....but the bidding is always there, strong. n.

[neilgin1]

Interesting info Neil. So what are they moving their cash into?

And who is buying this stuff?

68Ole Bud, hope you and the better half are good.

who's buying this stuff?......dunno, the greater fool?

I just got real tired, I was going to write more. You watching the Ukraine? very worrisome. Seems like WE WANT war with Russia....WHY?!?

[neilgin1]

Good article.
PS - Don't forget to rotate your MRE's.
PPS - There is no such thing as too many rounds!

lol....amen!! I heard that! be blessed.