In China if you buy a speculative property it devalues it to have had anyone lived in it ... China is the bubble you need to worry about. Saw a program on the ABC the other night about the 'Old English' development in Shanghai. The suburb is essentially empty because the properties are currently owned by property investors. Hardly an example of 'effective resource allocation'. The US, Western Europe and Japan have all shown where that game ends ... and they built their empires on $5-10/barrel oil and $1.5/lb copper.
