Economist Andy Xie: 'Get Rich Quick' Mentality Dooms China To Endless Bubbles
Jan 14, 2010 at 2:21 AM
DailyBail in andy xie, bubble, bubbles, china, china

Fat Chinese Boy, China

The overwhelming desire for getting rich quick dominates every nook, fissure and strata of Chinese society.  Such desires cannot be fulfilled; the terrible logic of economics is that money must circulate. Creating bubbles can temporarily blind people to this logic, as overvalued assets substitute for money to fill psychological needs.  This is why, whenever conditions permit, China seems to have asset bubbles.

Bubbles exaggerate reality but are not formed out of thin air. Cheap money and strong growth are the usual ingredients for bubble-making. Both existed over the past five years. But now, China depends entirely on cheap money to support overvalued assets.

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