Angra Mainyu
Veteran Member
Why would privave money invest in ghost cities?Yeah, it's to continue the economic growth and prevent unemployment.
Road would have to be built with government money. The ghost cities are being done privately--because Beijing tells the banks to write the loans, period.
Why can't they do the same with roads?
Note what I said about government vs private money.
Why would private money invest in roads?
If no one buys the things they build - because they are ghost cities -, then it seems to me there is no reason other than the money they get from the loans, or else the government is actually buying the ghost cities, or someone is getting a cut somewhere. But whatever the reason, it seems to me it could as well apply to roads.
In other words, the difference between investing in roads and cities would be that some private individuals would buy the buildings, houses, etc., in the cities (leaving aside, e.g., a concession to make money out of the road, but I'm leaving that aside because these would probably be low-traffic roads). But if that's not happening anyway (because those are ghost cities), and furthermore, those are predicted to be ghost cities (i.e., no poor planning), that difference disappears. Why do you think private investors will prefer to invest in ghost cities over roads? (i.e., how is that better for them?).