Wednesday, May 12, 2010

Beijing resident throws shoe at a property developer

Beijing resident throws a shoe at a property developer in his protest against unrealistic housing prices in China. It won't be too long before many Indian's start doing this at property exhibitions. The Iraqi jouranlist who threw the first shoe on George Bush was followed by another journalist who threw a shoe at the finance minister P. Chidambaram. The Chinese protestor received applause from the crowd so the common pain point is felt by a lot of people in the audience


DhImAn said...

Good. These retards should get what they rightly deserve. After all they are greedy and they sell this junk.

But then again, maybe the shoe from the other foot should see some contact with the faces of the people who actually buy the junk that those people sell.

Annonymous said...

This is hilarious. But if rates keep going up this way maybe people will surely start pelting developers selling "Affordable Homes @ 75lacs only-" with shoes and rotten tomatoes

Anonymous said...

The question I had is when inflation is so rampant, why waste your shoes on waste?

Maybe one can use more disposable objects...stones would fit in nicely or maybe bags of sundaas or even sussuu..

Anonymous said...

What is the use of throwing shoes at the property developer. He is just part of the big nexus. Government is deeply involved in the real estate racket. We may throw soes, stones, sandaas, sussu or whatever, but the this mafia is not going to be defeated. If you want to defeat it, then there is a way. Start supporting the oppressed and the organizations that represent them even though they are militant. By saying, I am not meaning terrorist muslim groups. I am referring our own people fighting the corrupt in the jungles . They want your moral support, thats all

Iyer said...

I do sympathize with the oppressed. However, the Naxalites are part of a political party and no one knows their real agenda. I dont think the a revolution that they in their mind will do anything good.

As the country is developing, more or more educated people will be driven to lead slum dwellers life because of the unaffordable homes, forcing them in the path of corruption . This isn't the development that we should be proud of. In fact, the country is regressing due to corruption at all levels.

The more I think of this, the more complex the problem seems to become. There isn't a easy way to quit this god forsaken country, as everywhere Indians are shunned for their crookedness

Anonymous said...

Very topical report - Chinas' housing bubble bursting?

Anonymous said...

STOP BUYING at inflated prices

Thats only solution to bring these goons to our feet.

Anonymous said...

Why is BB hiding his face in his arse? Why is he not coming out and blabbing about the RE?

As per news articles, China's crash is coming sooner than later.

Anonymous said...

Looks like BB and Sussuu have run for the hills, knowing that a crash is imminent...

Anonymous said...

@Anonymous 4.00 AM

Are you saying that the china crash is going to make any difference to Indian real estate ?.

99.9% of the apartments constructed and under construction in Mumbai are either sold or booked. Out of these only less than 5% are bank financed. What does this tell you.

No doubt the property value is going down on paper. How many people in Mumbai will start selling because the value starts sliding. None.

The effect of a crash will slowdown or stop construction activity until the situation improves.

In a city like Mumbai 10 million people are living in either slums or sub standard accommodation. The construction activity doesn't even meet a tiny fraction of the actual demand. In these circumstances, the crash theory applicable to elsewhere in the world is not at all applicable here.

You may curse people who dont share your viewpoint,but that is not going to change ground reality

Anonymous said...

Anon above:
You'll see the ground reality when it all happens in your face. There is an oversupply of flats in India and the supply is enough to meet demand for the next 10 years.

As reagrds to prices, houses will lose the black money component by about 50%. You can buy more if you are very optimistic.

China crash will bring unstable times for all of South Asia. Especially Australia will also crash with China crash. Indian bubble will also not sustain for a long time due to debt and deficit India is facing. Moreover, with inflation at ll time high, interest rates will have to go up. I hope RBI raises rates by 200 basis points sooner than later to prevent massive unrest among people. Inflation could be a killer.

And Govt. has to stop spending less which will take down the steam from prices.

I'm a firm believer that the RE prices in India are not sustainable especially in metro areas and would come down by 50-60%. Just a matter of time when the Govt. stops all their steroids.

I'm scared of India's debt crisis as debt to GDP ratio is running at 83% almost same as EU countries. If India gets downgraded, all talks about growth in India goes to toilet. Another Greece.

Anonymous said...

The International Monetary Fund estimates India’s debt at 86 percent of GDP, almost four times China’s. Fiscal restraint may help the South Asian nation secure a higher sovereign-debt rating, which is now the lowest among the BRIC nations, which include Brazil, Russia and China.

Anonymous said...

India is borrowing more and its ratings may soon be cut down to junk.

India is planning to set up a Rs 50,000 crore debt fund to build ports, roads, and bridges needed as part of infrastructure development to boost economic growth, according to Montek Singh Ahluwalia, Planning Commission Chairman.

Anonymous said...

S&P is already looking to downgrade India:::

NEW DELHI - Global credit ratings agency Standard & Poor’s has said that a prolonged and widespread debt crisis in Europe could have a substantial negative impact on the Indian economy.

“If the solution of the Greece crisis takes longer than anticipated or if the confidence crisis in Europe becomes more widespread, there could be a more substantial negative impact to India,” S&P Director (Sovereign & International Public Finance Ratings) Takahira Ogawa said.

Anonymous said...

India's debt to GDP ratio is 86%. UK is also going the same path:

In 2008-2009, Britain had gross debt amounting to 55 per cent of GDP; by 2010-11, it will hit 82 per cent. Today, Britain's budget deficit is almost as big as Greece’s in proportion to its economy.

The government now accounts for over half the economy. And with the highest budget deficit in the EU at more than 12% of GDP, London risks going down the path of Greece if it doesn't put its house in order sooner rather than later.

Anonymous said...

Mukesh Ambani maybe the richest Indian but he should not foolishly predict the oil prices as below. Oil is going to $62-$65 in the near term against what he is saying $100 a barrel. Does he understand macroeconomics?

From M Ambani:
Crude oil prices may soon rise to $100 a barrel due to increasing costs of exploration and production, and businesses should be prepared for higher energy prices than what they were used to in the last 20 years, Reliance Industries chairman Mukesh Ambani said on Friday.

shailesh said...

There are lot of investors compared to actual users in India, esp Mumbai. All government has to do is the person booking flat with builder, has to pay 50% stamp duty at the time booking and 50% at delivery. That will stop all speculators. The stamp duty on 50 lakh flat would be at least 2 to 3 lakh, and if one is not buying to live in it, it is huge risk.

Expecting that from government is foolish though !!!

Omkar said...

humble reminder,
Please keep me informed when Mumbai real estate prices drop,
at least in last 5 years its trend is UP

DhImAn said...

Insanity may be defined as doing the same thing again and again and expecting different outcomes.

We are hardly dreamers. We are simply not insane, unlike those who expect this bubble to not burst, unlike every other bubble in the entire history of mankind.

Anonymous said...


Speculators will add the stamp duty cost to the price they sell. 2-3 lakhs wont be a problem for the buyer when i willing to pay 1-2 crores.

The govt can control the price if it is willing. Along with the liberalization, thousands of money laundering companys have sprung up india, often charitable institutions, ashrams etc and these help the builders, buyers/sellers to legitimize the transactions. ll these organizations survive under the patronage of law makers, and therefore whichever way you look at this problem, it is extremely difficult to arrive at a solution.

Meantime, if the bubble theory. S&P rating, external debtetc helps someone a ray of hope, why not indulge in it. No one knows what tomorrow brings.

Anonymous said...

@Omkar Bhayya,

No one denies your remark. However, may I request you to be a bit compassionate and tone down your sarcasm. All of us who read this blog are trying to find out what is likely to happen in the real estate sector. If we all had homes, we wouldn't be here exchanging ideas.

Take it easy

Anonymous said...

Regarding Mukesh Ambani's comment on Oil. There are two reasons for this dollar depreciation, and the fact that all the easily drawable oil is gone, world will never see it. All oil is either offshore in deep water wells (therefore risky - like the recent Louisiana Oil spill), and are either shale oil sands which cost a lot to extract. Natural gas and coal to liquid is becoming a replacement but its not cheap either anymore. We are in a situation called Oil Plateau where production just about betters demand, we will soon become Peak Oil where demand and supply mismatch will be real and unless US doesnt reduce its demand significantly, we will see Oil prices cross even $200 per barrel. US has 4% of world population but consumes 27% of all fossil fuels. This would clearly mean depression for India - the high inflation and low growth years of 1970;s will return within the decade. There is no upside, there are no real alternative fuels to replace global oil dependence and there is no such thing as efficient engines. Though technology exists, its too late to manufacture cost effectively. Most of electric battery technologies which use Rare earths like lithium and so on, are already at its Peak and are in constant state of decline, as is gold.
We are clearly unsustainable on this planet. In another 20 years this will be proven.

Jayant said...

In USA, inspite of all the efforts by Government, Lobbyist, Media Spin masters i.e. First Time Home Buyer credit, purchase of MBS by Fed, the house prices have been dropping and the people are just walking away from home (mortgage obligation ) and dumping homes back to the banks. The banks are holding the inventories off the market and showing the fake profits on the books. Shame of media touts trumpeting the spectacular Global Recovery.

Strategic defaults up in March; professor says risk of contagion remains

Friday, May 07, 2010 1:42 PM ET
Strategic defaults up in March; professor says risk of contagion remains

By Zach Fox

New data indicates that strategic defaults are on the rise, and industry observers told SNL that the risk of contagion, which could spell disaster for a housing market struggling to recover, remains.

In March, 31% of all foreclosures were perceived to be strategic, up from 22% during the year-ago month, according to the Chicago Booth/Kellogg School Financial Trust Index published April 30.

But perhaps more concerning was the index's insights into borrower attitudes. The study showed that the likelihood of homeowners walking away from a mortgage increases 23% when they learn that a neighbor with negative equity received a partial loan for forgiveness.


Ultimately, Zingales said the future of strategic defaults is inextricably tied to the direction of home prices.

"The big question that remains to be determined is what is going to happen in the next six months because a lot of the initiatives that have been taken to support the housing market, from the tax credit to the purchase of mortgage bonds by the [Federal Reserve], is terminated ," Zingales said. "So the risk of a further slide in home prices is real. I don't want to say that it's necessarily likely, but it's real. It's a real possibility."

Anonymous said...

Anon above:

Yes, in the long run Oil will be expensive. What Ambani is saying is "soon". Till the EU crisis is resoloved, with UK, Australia, CHina and Crisis in the pipeline, I don'tthink Oil can go higher.

Btw, Green Energy is in works and would replace Oil in the next 20 years or so. It would have replaced it by now but the Oil cartel prevented it. Now people are more aware.

Anonymous said...


US will see another 25% drop in prices. People in India are big fools who cannot take any lesson. The biggest fools are Australians who are drinking that kool-aid.

Omkar said...

ok , those who do not see the reality and live in their own world of imagination, what he should be called as, except dreamer !!
You are here, on virtual blog, means in real life, you are frustrated with that why the prices are not going down, and here you come to discuss and find mental relief , that yes one day they will go down, what else..
remember, if you have genuine need, go ahead and buy, if you are speculator , keep visiting such blogs..

Anonymous said...

Omkar bhai tusi ek ho? I can understand why people write comments here. But why are you coming here and challenging them or provoking them to buy? hmmmm....are you related to sundaas or sussuu bhai?

Omkar said...

Dear anonymous friend, i do no understand what you write, but can understand why someone want to post anonymous.. you yourself dont have believe in you, then who other would believe you..

Rahul Bajaj said...

Those who write about Greece, Australia, UK, Italy etc are really living in a dream world. They read tit-bits on internet, newspapers etc and start comparing India with those developed countries. Omkar has atleast has the courtesy to call them dreamers bbut i would call them fools.

Anonymous said...

Rahul Bajaj,naam to tune bara rahka hai par akal bahut choti hai.

Anonymous said...

If the new Financial Reform bill in US passes, Sensex will lose 5000 points the same day.

Reason: VOlcker Rule which is a part of the bill doesn't allow banks to invest. Majority of foreign investments inSensex is from US banks which will have to sell immediately.

Anonymous said...

Important comment: Paul Volcker, former chairman of the Federal Reserve, long-time associate of the Rockefeller family, advisor to Obama, and head of J. Rothschild, Wolfensohn & Co., has told students at the London School of Economics that the future of the Euro is in doubt. That means it is probably dead.

It means Gold going further up, USD getting stronger and stocks get beaten all over the world.

Anonymous said...

What a good move for Modular Home Builder. I heard they were eventually going to offer Inexpensive Housing.

It will be a great day when the housing can be affordable again. This merger is a great step towards that.

rajni sharma said...

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Nd one of your best post...Thanks
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