The following script is from “China’s Real Estate Bubble” which aired on March 3, 2013, and was rebroadcast on Aug. 11, 2013. Lesley Stahl is the correspondent. Shachar Bar-On, producer.
If trouble comes in threes, then what’ll be the next global market to melt down after the U.S. and Europe? Some are looking nervously at China.
China has been nothing short of a financial miracle. In just 30 years, this state-controlled economy became the world’s second largest, deftly managed by government policies and decrees.
One sector the authorities concentrated on was real estate and construction. But, as we first reported in March, that may have created the largest housing bubble in human history. If you go to China, it’s easy to see why there’s all the talk of a bubble. We discovered that the most populated nation on Earth is building houses, districts and cities with no one in them.
Lesley Stahl: So this is Zhengzhou. And we are on the major highway, or the major road. And it’s rush hour.
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