"All it really does is inflate the banks profits. " it is right,...

"All it really does is inflate the banks profits. " it is right, but it is more than that. Properties essentially are the most important taxing tool of the governments, world wide. Our state and local governments heavily rely on property related taxes. We are not the worst. Except the central government, all other 5 tiers of governments in China, 70- 80% of their income is from land sale and other property related taxes. All governments will try every possibility to stop the property market collapse. However it does not change the fact that the inflated prices are built on unsustainable debt. The repayment is based on assumed future incomes. We assume that China will forever buy up our minerals with inflated prices, but they already have 80 million empty units and billions of square meters of empty commercial properties sitting there getting dust. How many more ghost towns they can keep building. As a totalitarian system, they can distort the system to a far more extent than we can, but again it does not change the law of gravity, the more you distort it, the harder you will be hit back. It seems we often forget China is still one of the poorest third world country which lives on selling cheap and low added value products to the western world which is facing aging population and slowing down consumption. China construction boom is a big bubble exactly same as Japan's in their
80's except bigger. What about ours?