Why the Chinese yuan will DEVALUATE when real state bubble collapses.

Discussion in 'Economics' started by latinotrader, Nov 4, 2010.

  1. The yuan will devaluate instead of revaluating when the chinese real state bubble collapses.

    Chinese will say to America: "Hey we finally free floated the currency as you wanted, it's not our falt if it's devaluating instead of revaluating".

    i.e. Google Ordos, one of at least a dozen chinese Dubai-style ghost towns:
    The official 28,000 inhabitants figure is a lie. Being china nobody can verify or refute it without facing a firing squad.
  2. Is "DEVALUATE" a word?
  3. http://www.thefreedictionary.com/devaluate

    de·val·ue (d-vly) also de·val·u·ate (-vly-t)
    v. de·val·ued also de·valu·at·ed, de·val·u·ing also de·val·u·at·ing, de·val·ues also de·val·u·ates

    1. To lessen or cancel the value of.
    2. To lower the exchange value of (a currency) by lowering its gold equivalency.
    To lower the exchange value of a currency by lowering its gold equivalency.
  4. oooooohhhhh snaaaaaaaap
  5. Chinese real estate bubble will not affect banks in China as people are required to put 40-50% down when they buy a place. We got hit hard because our people were buying no money down.

    When real estate drops 30% in china, nobody will walk away as they still have equity in their houses.
  6. the1


    Sweet! Who's gonna start the ET Word of the Day thread?

  7. Touche... I stand corrected and humbled.
  8. zdreg


    congratulations. it is an achievement. how does it feel?

    to the op latino trader u are in good co. as a well know short seller has the same opinion.
  9. Feels perfectly normal... Why do you ask?