Zillow Opens the Floodgates to Chinese Buyers in Order to Keep Housing Bubble 2.0 Inflated

Earlier this week, Michael Snyder made quite a splash in the alternative media world with his article: The Chinese Are Acquiring Large Chunks Of Land In Communities All Over America.

Meanwhile, just last year I covered how corrupt Chinese are laundering their money through U.S. real estate in my post: Corrupt Chinese Politicians are Buying Billions in U.S. Real Estate.

This is a very important trend that we must keep our eyes on in the years ahead. Particularly since private equity buyers and hedge funds can no longer make a return on buy-to-rent, the real estate industry will become increasingly desperate to pitch American property to anyone willing to keep Housing Bubble 2.0 inflated.

From Bloomberg:

Zillow Inc. agreed to make its U.S. property listings available to Chinese consumers through a partnership with a Beijing-based website.

E-House Holdings Ltd.’s Leju real estate site will carry Zillow listings that include homes for sale by agent and owner, units in projects under construction and foreclosures and short-sale properties, Seattle-based Zillow said today in a statement.

Chinese buyers spent more than $11 billion on U.S. real estate last year, with an average $425,000 purchase, Zillow said. The Leju-Zillow site, to be operated by the U.S. company, will be ready around midyear, according to the statement.

“Brokers and agents with listings on Zillow are now able to reach Chinese home shoppers who are ready to invest in the U.S. market, with no additional cost or effort,” Errol Samuelson, Zillow’s chief industry development officer, said in the statement.

Have fun being a peasant under your Wall Street and Chinese feudal lords.

Full article here.

In Liberty,
Michael Krieger

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18 Comments

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  1. The Chinese own enormous amounts of US debt and they are using this money to buy land. They have bought the land mark Rockefeller Plaza – the bastion of American free trade. When you own to much debt, it’s only right that you be given the opportunity to buy at your leisure. After all you are dealing with a free market? The money is not necessarily illegally gained. They own your debt so what are you going to do about it?

    • Whatever you say Edward………………….

      Moral Blindness Syndrome (MBS) – When Money and Confidence Dies It Will Be Televised

      “Capitalism is at risk of failing today not because we are running out of innovations, or because markets are failing to inspire private actions, but because we’ve lost sight of the operational failings of unfettered gluttony.

      We are neglecting a torrent of market failures in infrastructure, finance, and the environment. We are turning our backs on a grotesque worsening of income inequality and willfully continuing to slash social benefits.

      We are destroying the Earth as if we are indeed the last generation.”

      Jeffrey Sachs, Self-interest, without morals, leads to capitalism’s self-destruction

      The world sees this, even if they people of the US and UK themselves don’t. The world is watching, and there will be consequences. Money and confidence will die first on the periphery, and then the deluge may come.

      http://jessescrossroadscafe.blogspot.com/2014/04/moral-blindness-syndrome-mbs-when-money.html

    • We aren’t witnessing the failure of ‘Capitalism.’

      We are seeing the failure of the subsidization of credit markets, which has produced the same results price-fixing always produces.

      “Too big to fail” is a direct violation of a proper free price, profit AND LOSS system.

      Or, if you prefer Islam (which calls for the gold Dinar as a medium of exchange):

      “Only Allah can fix prices.”

    • How the Rich Became Dependent on Government Welfare

      Entitled “Subsidizing the Corporate One Percent,” the report from the taxpayer watchdog group Good Jobs First shows that the world’s largest companies aren’t models of self-sufficiency and unbridled capitalism. To the contrary, they’re propped up by billions of dollars in welfare payments from state and local governments.

      Such subsidies might be a bit more defensible if they were being doled out in a way that promoted upstart entrepreneurialism. But as the study also shows, a full “three-quarters of all the economic development dollars awarded and disclosed by state and local governments have gone to just 965 large corporations” — not to the small businesses and startups that politicians so often pretend to care about.

      In dollar figures, that’s a whopping $110 billion going to big companies. Fortune 500 firms alone receive more than 16,000 subsidies at a total cost of $63 billion.

      These kinds of handouts, of course, are the definition of government intervention in the market. Nonetheless, those who receive the subsidies are still portrayed as free-market paragons.

      Consider Charles and David Koch. Their company, Koch Industries, has relied on $88 million worth of government handouts. Yet, as the major financiers of the anti-government right, the Kochs are still billed as libertarian free-market activists.

      Similarly, behold the big tech firms. They are often portrayed as self-made success stories. Yet, as Good Jobs First shows, they are among the biggest recipients of the subsidies.

      Intel leads the tech pack with 58 subsidies worth $3.8 billion.

      Next up is IBM, which has received more than $1 billion in subsidies. Most of that is from New York — a state proudly promoting its corporate handouts in a new ad campaign.

      Then there’s Google’s $632 million and Yahoo’s $260 million — both sets of subsidies primarily from data center deals. And not to be forgotten is 38 Studios, the now bankrupt software firm that received $75 million in Rhode Island taxpayer cash. The company received the handout at the very moment Rhode Island was pleading “poverty” to justify cuts to public workers’ retirement benefits.

      http://www.truth-out.org/buzzflash/commentary/how-the-rich-became-dependent-on-government-welfare/18508-how-the-rich-became-dependent-on-government-welfare

    • Nice supporting document.

      Thanks for backing up my point, which I will quote now that you’ve implied your agreement by presenting evidence for it:

      “We aren’t witnessing the failure of ‘Capitalism.’

      We are seeing the failure of the subsidization of credit markets, which has produced the same results price-fixing always produces.”

    • For tommymaq….you mean creditism?

      “Capitalism has died”.

      That was the controversial theme of Richard Duncan’s World War D presentation on Monday. In place of capitalism, Duncan argued, we now have “creditism”: a form of credit-fuelled economic growth directed by the US government.

      But, he warned, that system is in danger of imminent collapse.

      Duncan pinpoints the beginning of this new system – or the death of capitalism-as the First World War. To pay for US weaponry and technology, the Europeans gave the US gold. This fuelled a massive credit boom and the period known as the roaring ’20s.

      http://dailyreckoning.com/in-support-of-even-more-us-debt/

    • …which is distinct from capitalism, or the free price profit-and-loss system frequently called capitalism, which was the point of raising the distinction. Were you intending to back me up with some name-dropping and links?

      Unfortunately, constantly posting not-very-relevant links, instead of addressing what I said directly aka having a rational conversation, means you’ve dismissed yourself for obscurantism.

    • The federal government owns about 1/3 of the land area of the continental US.

      Selling off that massive holding would be a great way to pay off the debt, taking massive amounts of control away from the buffoons that squandered so much.

      What’s the problem, exactly?

    • And after that…..what are we?…owned forever.

      Nice try.

    • Evidently you believe yourself to be a piece of real estate.

      So…you can’t actually describe what the problem is.

      Try? If my goal was to leave you stammering, it looks like I was quite successful.

      You be sure to write back when you can explain what the problem is, OK? I definitely don’t go for bogeymen, but if you can articulate a valid concern, I’d like to know it.

    • Oh Tommymaq you got me all shook up here ,,,,,

      The Fascist Origin and Essence of Privatization

      Washington’s Blog is non-partisan. We believe that the war between liberals and conservatives is a false divide-and-conquer dog-and-pony show created by the powers that be to keep the American people divided and distracted. See this, this, this, this, this, this, this, this, this and this.

      We can argue it either way, because we are ideologically neutral: allowing the private sector to own and manage resources is good … or allowing the public sector to do so is healthy.

      Here’s the key: If these resources had always been in the private sector, that would be fine … that would be free market capitalism.

      But if they were purchased on the people’s dime with our blood, tears, sweat and taxpayer funds – and then sold to the big boys for pennies on the dollar – that’s not capitalism … that’s looting. Unfortunately, that’s exactly what the Nazis, Italian fascists, and modern American “leaders” are doing.

      http://www.washingtonsblog.com/2014/01/fascist-origin-essence-privatization.html

    • Whether or not our governors acted wisely or criminally STILL wasn’t the question. By that logic, every single move they make would be suspect, every single transaction would be immoral, and the dollar system would have already collapsed, which STILL won’t provide a distinction by which to decide if any particular transaction is ethical.

      I’m ready to learn what you consider the problem to be when holders of national debt sell it for real estate in that nation.

      If your complaint is with the debt bubble, then it’s with the creators, not the benefactors.

      If your complaint is with the *amount* of money, then you can simply explain which amount would be OK, and why that amount and not some other amount.

      If your complaint is with the money system, then which *other* transactions since 1913 qualify for that same level of second-guessing? Which don’t?

      We can stipulate that currency made of IOUs is inherently fraudulent, and accordingly, all transactions are questionable and such fraud should be ended.

      The question you are stumbling upon is why some particular transaction, denominated in those fraudulent dollars, is a problem.

      You be sure to write back when you can explain what the problem is, OK? I definitely don’t go for bogeymen, but if you can articulate a valid concern, I’d like to know it.

      (Not links, Mr. Obscurantist – *your* words.)

  2. Sometimes you have so much illegal money you have to get it out of the country.
    How are you supposed to compete with that?

    China seizes $14.5 billion assets from family, associates of ex-security chief: sources
    (Reuters) – Chinese authorities have seized assets worth at least 90 billion yuan ($14.5 billion) from family members and associates of retired domestic security tsar Zhou Yongkang, who is at the centre of China’s biggest corruption scandal in more than six decades, two sources said.

    More than 300 of Zhou’s relatives, political allies, proteges and staff have also been taken into custody or questioned in the past four months, the sources, who have been briefed on the investigation, told Reuters.

    The sheer size of the asset seizures and the scale of the investigations into the people around Zhou – both unreported until now – make the corruption probe unprecedented in modern China and would appear to show that President Xi Jinping is tackling graft at the highest levels.

    But it may also be driven partly by political payback after Zhou angered leaders such as Xi by opposing the ouster of former high-flying politician Bo Xilai, who was jailed for life in September for corruption and abuse of power.

    Zhou, 71, has been under virtual house arrest since authorities began formally investigating him late last year. He is the most senior Chinese politician to be ensnared in a corruption investigation since the Communist Party swept to power in 1949.

    “It’s the ugliest in the history of the New China,” said one of the sources, who has ties to the leadership, requesting anonymity to avoid repercussions for speaking to the foreign media about elite politics.
    http://www.reuters.com/article/2014/03/30/us-china-corruption-zhou-idUSBREA2T02S20140330

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