From Gotti following up on his dire warning about a looming apartment crash:
One of my readers who did not allow his full name to be published but used the name “James” complained that I had grossly understated the problem.
James revealed that he owned and ran a debt and equity funding business that is on the frontline of the apartment settlement problem. His business deals with the developers of the apartment complexes rather than rather than the investors.
James describes what is ahead this way:
“The problem is much worse than what you have described. Our analysis of every development in the country suggests that settlement failures will be between $1 billion and $1.5bn every month for the next 12 months. This is from the Chinese alone, but when settlement prices start coming more than 10 per cent under purchase prices, we will also start to see local buyers attempting to walk away from settling. As Julius Caesar famously said: ‘the die is cast.’”
We shall see.
