The Skyscraper Indicator Revisited
We have written of the skyscraper indicator - an anecdotal indicator of humanity's incredible ego - a handful of times over the years. While we were talking of impending doom, the financial world and media were in awe of the tremendous economic growth in emerging markets. Needless to say, they were completely duped. Even today the financial world is only awakening to a recent "real estate" bubble in China. That is purely preposterous. China doesn't have a real estate bubble. China's entire economy is the greatest economic bubble the world has ever seen and it has been building for more than a decade. Real estate is a rounding error. Just as real estate is clearly not the foundational problem with the U.S. economy - something we have said repeatedly over the years. Something the financial wizards on Wall Street or media incredibly have not picked up on yet.
Given our last post on Dubai, let's give a quick update with a site we have linked to in the past. The site lists the tallest buildings in the world sliced a few different ways. One is the tallest buildings under construction in 2009. The graphic linked to below requires you to scroll left and right to see the entire first page. Funny how 23 of the top 25 buildings are in markets where we wrote incessantly about impending doom while the world was partying hard. And most still don't get it. The human ego won't allow them to acknowledge the monstrosity of the crisis that faces these countries. The same ego which created the problem in the first place.
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