19-04-2010, 06:52 AM
http://www.theaustralian.com.au/business...5855340213
The Chinese know that vast wealth accumulation by a tiny few has an adverse effect on social cohesion, so they intend to do something about it. It's a pity Western Governments don't see the logic in that. Our system of representative 'democracy' has outlived its usefullness and has become destructive and dangerous. When the moneyed class have full control of the political system the rest of us lose out badly because the system then rewards greed above everything else.
Quote:China ups war on property prices Joy C. Shaw From: The Wall Street Journal April 19, 2010 10:06AM
CHINA'S State Council took steps to further restrict speculative property investments, including allowing banks to refuse additional mortgages for home buyers who already own two or more properties.
In an indication that Beijing is increasingly worried about runaway property prices, the State Council, the country's cabinet, said Saturday that local governments can take temporary measures to limit the number of property purchases each investor makes within a certain period.
The steps follow moves by the Chinese central government Thursday to raise minimum down-payment levels and mortgage rates for certain home buyers, after data showed property prices in 70 of China's large and medium-sized cities rose 11.7 per cent in March from a year earlier, the fastest pace since China began releasing the data in July 2005.
The government's notice Saturday appears aimed at encouraging local governments and banks to even more strictly control credit for speculative property transactions.
The Chinese know that vast wealth accumulation by a tiny few has an adverse effect on social cohesion, so they intend to do something about it. It's a pity Western Governments don't see the logic in that. Our system of representative 'democracy' has outlived its usefullness and has become destructive and dangerous. When the moneyed class have full control of the political system the rest of us lose out badly because the system then rewards greed above everything else.