> For example, a large force behind the housing bubble is the drive to increase local GDP,
>which is a vital promotion metric for local officials;
Also top party men are rotated from region to region regularly, so they only care about the local economy for as long as they are in tenure, typically 5 years. Whatever happens after that isn't their problem.
The guys who built those empty cities and super-malls moved onwards and upwards. You can always blame the guy who took over after you for dropping the ball, or the guy you took over from for passing you a dud.
For example, a large force behind the housing bubble is the drive to increase local GDP, which is a vital promotion metric for local officials; another force is local bank executives' desire to pretty-up their promotion metric by pushing for more "safe" yet profitable loans. Construction companies are mostly just there to ride the train.