China possible downturn signal - Sky City One?

Discussion in 'Economics' started by RedDuke, Jul 22, 2013.

  1. RedDuke

    RedDuke

    I read in various articles that it is almost a "certainty" or "curse" that the economy takes a big downturn when a massive project like this completes. It is probably ridiculous but......

    Thoughts???

    http://en.wikipedia.org/wiki/Sky_City
     
  2. If anytime a big project completes, a civillization goes downhill, then there would be no human history left.
     
  3. No need to be so negative all the time. It is a tall building. Not every tall building is the herald of the decline in civilization.

    What I'm interested in is this company seems to be really innovating in the area of construction. Modular construction seems like it could really cut down the costs and construction times of buildings. I would note this Wikipedia article also cites the company building a 30 story hotel in 15 days.
     
  4. The Skyscraper Indicator
    By Victor Niederhoffer
    Saturday, July 15, 2006

    Far too often, a company, country, or civilization builds a tall, lavish building and experiences disaster shortly thereafter. Start in Babylon, circa 2800 B.C., when the conqueror Nimrod attempted to build “a tower that reaches to the heavens, so that we may make a name for ourselves.” The Lord, we are told in the “Book of Genesis,” threw the builders into confusion, halting construction permanently.

    Right up to modern days, the landscape is littered with disastrous examples of the tendency to build high before a fall. The soaring towers of Southeast Asia, completed before the 1997 crash, come to mind. The world’s current tallest buildings, the Petronas Towers, were completed in Kuala Lumpur in 1997, the year the Malaysian stock market fell 50 percent. The December 28, 1999, christening of the world’s largest video display, the Nasdaq’s $37 million MarketSite Tower in Manhattan’s Times Square, came just three months before a 70 percent, 18-month crash in the Nasdaq Composite Index. Enron had almost completed a lavish 40-story tower designed by celebrity architect Cesar Pelli when it filed for bankruptcy in 2002.

    John Newbegin, who runs a Web site called nycskyscrapers.com, wrote us: “I was totally fooled as to Enron’s true financial condition] by the beautiful building... They appeared to be by far the most prosperous of all the energy companies I saw, judging from the appearance of the edifice. I was convinced that they were huge and had all kinds of innovative assets and infrastructure all over the U.S.”

    On October 10, 2002, Enron’s brand-new skyscraper, complete with an eight-story-high trading floor, was sold for one-third of its $300 million cost to help pay off some $50 billion owed to creditors.

    Full article here:

    http://www.stansberryresearch.com/dailywealth/1158/the-skyscraper-indicator
     
  5. It's the "announcement" and "groundbreaking" for the project that "triggers" the bear market. The "completion" can mark the beginning of a "sucker rally" or new bull market. :cool:
     
  6. Read: Normally for every time of economic downturn, naturally we can find a new landmark construction being built somewhere in the world, because during economic downturn (almost impossible to find financial backing) nobody is interested (financially capable) in building new landmark construction!
     
  7. d08

    d08

    Unlike Dubai, this building actually features new technologies and it's not all just outsourced. The Dubai method of "big and wasteful" was quite different from this intelligent attempt at an overly grandiose building.