China Is Not a Bubble: It's the Hindenburg
China is often admired as an economic miracle, especially since the government has been able to balance, thus far, a Communist/Socialist political infrastructure while operating a semi-capitalist free market. But as a side effect of a global economic slow down, and considering bits of information that filter out of an extremely well controlled society, Chinas economic power is beginning to be questioned. The often mentioned Chinese housing bubble appears in the headlines from time to time, despite a lack of understanding of what exactly is taking place.
In the United States and Europe, citizens understand what happened, and why the housing market came crashing down: Runaway prices, fueled by extremely low rates, and a lack of banking oversight. The fallout from the excesses of the past are still with us, and as Reuters pointed out on March 16, U.S. Housing starts posted their biggest decline in 27 years in February
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