Why Are the Chinese Investing so Heavily in U.S.?

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Dec. 20 (Bloomberg) -- Bloomberg’s Tom Keene discusses Chinese investment in the U.S. real estate market. He speaks with Betty Liu and Cory Johnson on Bloomberg Television's "In The Loop." (Source: Bloomberg)

Mogul bruce ratner why the chinese are not investing in their own country.

The question is, why are they investing in the united states?

The chinese market is more difficult now, more competitive.

And i think the issues that were brought up over oversupply -- part of the reason is they are seeing there are better markets and other places for the first time.

The united states, australia, different places around the world are better places to invest dan china.

You know, this has been, tom, a trend -- [laughter] i'm listening to bruce -- did he say that on my program?

I guess he did.

It was early.

Something bruce and others in real estate have been saying for several years, that the chinese are coming and they've got tons of money and they need to find a place to put it.

I don't think it has anything to do with internal rate of return or spreadsheets -- i will go with you on diversification, but i think it is about -- the john templeton predicted this 35-40 years ago.

He was adamant there would be too much money.

This is the word he would use.

He had a tennessee accent.

There will be a shortage of chairs, tom.

That is what there is, a shortage of real estate, shortage of shares, shortage of bonds, and all the money looking for a place to go.

Not just buying up real estate, but i was talking to a private ache woody investor -- investor who does a lot of business in china and she was saying there are ceo's he coming here personally because they are looking not just for real estate but deals.

They are going to silicon valley and they are looking for what companies can i invest in, where can i put money?

Cori, are they going into san francisco and then out to napa valley and the rest of it?

Wynton -- would twitter did an ideal iran to my friend, number one lost realtor in san francisco and i asked, is there really a twitter affect, ipo affect?

She said chinese people are coming to buy high end real estate in san francisco.

Inside, the single biggest driver of higher and real estate in san francisco.

The largest chinese residential real estate company -- they are building a huge project in san francisco together.

And selling it directly to people and in land china.

The question is, are those investments or is the money fleeing the economy?

Maybe both.

I would fold it in to what we saw, the third quarter final look at gdp.

I just said to michael mckee on bloomberg radio, michael mckee needs to take a massive victory lap.

Mike mckee in the depths of august kept going -- yeah, but, these are some of the tea leaves we see.

Mike mckee and other optimists -- brian west.

In chicago among them -- said, no, it is better than a look.

First look at third-quarter gdp.


A second look, not bad.

And out offour-handle david rosenberg rotated saying i have to admit, it is actually not as bad -- enfolded in -- in folds in to the new leadership in san francisco.

Not yet across all of america, but there it is.

You see it with what we tried to do, this mix of interviews.

When it is gloomy and we are all going to buy -- going to die -- how often have people said the fed was wrong being too optimistic -- it has to play out.

The fed has yet to play out because we have not seen credit growth and credit availability that really enjoying four percent.

It start to look like there is a fundamental change in the economy regarding employment.

Where's that the numbers aren't doing so much better and employment is not significantly improving maybe we are in a different kind of country where we do not have the kind of the -- am i right, you are actually in the middle of all of these chinese investors buying property?

Not that far from my world headquarters -- where are we?

Lexington avenue and 59th street.

Not at pier three?

Look at me.

157 is a luxury building.

Towers going up, and it is widely presumed so much is this affect of foreign money coming into new york, into washington.

Right for you.

You own or rent?

We own, we rent, we do it all.

It is cosmopolitan but i would suggest it is unique to a few geographies.

Miami as well.

That is what we are seeing, the bifurcation of the benefits of the economic recovery is happening for the rich, happening in certain cities but not happening and a lot of other places.

I guess from manpower from -- he said lumpy is the word.

This text has been automatically generated. It may not be 100% accurate.


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