Jim Rogers : China is vastly different from Dubai

Jim Rogers : Few seem to understand the historical significance of what is happening there. E.g. Gordon Chang has been writing books and articles since 2001 predicting the collapse of China and the disappearance of the Communist Party. Jim Chanos has been predicting the collapse of China since 2009 saying it will be “1000 times worse than Dubai”. [Jim Rogers explained at the time that showed no understanding of Dubai or of China.] Many in China do not fully understand either.
As the US was rising to its power and glory during the 19th Century, we had a horrible civil war, 15 depressions [Yes, with a D.], few human rights, little rule of law, periodic massacres in the streets, etc., etc. yet we still became the most successful country in the 20th Century.
China will have plenty of setbacks along the way as does every country, company, family, and individual that rises.
The Chinese government is trying to cool real estate so Jim Rogers would avoid Chinese Real Estate.

Jim Rogers started trading the stock market with $600 in 1968.In 1973 he formed the Quantum Fund with the legendary investor George Soros before retiring, a multi millionaire at the age of 37. Rogers and Soros helped steer the fund to a miraculous 4,200% return over the 10 year span of the fund while the S&P 500 returned just 47%.

Jim Rogers : Dubai vs China Real Estate Bubble

Jim Rogers : Dubai was building its plan, its economic plan was to build an economy based on real estate speculation. It didn’t have anything else. It didn’t have oil, natural resources, it had a small population etc. and there was gigantic real estate speculation in construction. China has huge amounts of stuff. It has a growing population. It has vast natural resources, not enough, but it’s got some. And then all those natural resources in Siberia which they can tap and they’ve got huge financial reserves. Dubai does not. Dubai has a rich big brother, but that’s all Dubai has and China has it all - resources, cheap labor, discipline, educated labor and vast markets. - in businessinsider





 
Jim Rogers started trading the stock market with $600 in 1968.In 1973 he formed the Quantum Fund with the legendary investor George Soros before retiring, a multi millionaire at the age of 37. Rogers and Soros helped steer the fund to a miraculous 4,200% return over the 10 year span of the fund while the S&P 500 returned just 47%.

Beijing is no Dubai

THE last time Beijing turned the screws on property investment, the world woke up to find China's heavy industry sector had been flattened and the resources boom had turned to bust. Rio Tinto jumped into the arms of Chinalco, banks pulled the rug from under Oz Minerals and the Reserve Bank slashed interest rates by 4 percentage points in a little over five months.

No surprise, then, that global investors are fretting about the fresh round of tightening that began a month ago. Chinese banks have lifted minimum mortgage deposits from 20 to 30 per cent for first home buyers and from 40 to 50 per cent for second home buyers. Beijing and some other major cities went an extra step by suspending all third mortgages, banning mortgage lending to non-city residents and floating threats of a new property tax. Chinese media were required to report ''the success of government policy tightening'' and otherwise guide ''healthy market expectations''.
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