The benefits and problems that comes with hosting the Olympics
Fresh with the news that Olympic games is a reason why Greece is facing the problems now, the business insider had a heads up how this would affect London, which hosts the 2012 games.
The Globe and Mail reports this morning that Athenians hoped the 2004 summer games would have been the start of a new era for the economically troubled state, but instead it has brought only more misery for those living on the outskirts of the Greek capital.
Greece’s debt position has nothing in common with Beijing, but the real estate boom surrounding their Olympics has been eerily similar. Whether or not that boom is a bubble is still up for debate, but it surely shows many signs of a speculative real estate rise.
A more fitting comparison to Greece may be the United Kingdom. Already flush with debt, the country is to host the 2012 Summer Olympics and his completely rebuilding a huge swath of the city to do so. Simultaneously, London is experiencing yet another property boom, bringing more gigantic debt funded projects to its skyline.
Whether the UK can handle the cost of the Olympics, now estimated at 9.3 billion pounds ($14.3 billion), remains to be seen.
How would an investor play this? i remember a statistic i saw a long time ago stating that investing based on Olympic events before the actual games is good since the construction and development and preparation brings about economic growth but after that it normally gets shitty.
[From the Business Insider >>]
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