Friday, December 18, 2009

Cooling off the Chinese housing market...

What an interesting juxtaposition relative to our government's philosophy which seems to be "We must prop up home prices at ANY cost!".

"The decree is expected to pour cool water on the ever-growing prices of urban houses nationwide, analysts said. Beijing will impose a sales tax on homes sold within five years of their purchase, increasing the time period from two years."

China is also moving to control runaway prices by requiring a 50% down payment on any purchases of land.

For all of their flaws, China has the benefit of running their government outside of the influence of lobbyists. When they see something that needs to be changed. They change it.

Now, I'd probably be in jail serving 12 years of hard labor for some of the things I write on my blog, but it might be a small price to pay to rid our system of lobbyists.

Oracle, Nike and Research in Motion seem to be the story of the day. Today is another option expiration so watch for crazy moves to the upside or downside.

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