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cbwang888 (25.53)

China is now a replay of US credit/housing bubble, but at the 3x fast forward speed



August 10, 2009 – Comments (4)

Story: China’s Property Sales Surge 60% From Year Earlier Chinese banks are doing what western banks were doing after dot-com bubble burst. Bubble after bubble is here to stay. It is mainly because we have many too-big-to-failed firms who can move billions of dollars in a micro-second. 

4 Comments – Post Your Own

#1) On August 10, 2009 at 7:22 AM, throwerw (28.45) wrote:

except the chinese are putting down 40 percent in cash and save half of their incomes.  chinese cities are preparing to double in size over the next few decades. chinese economic growth is not a bubble or an illusion in any sense of the word.  the chinese economy is driven by savings and production, while ours was and still is driven by borrowing and consumption.  the asian train is leaving the usa caboose behind.

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#2) On August 10, 2009 at 8:00 AM, hanlerris (26.70) wrote:

China definitely is growing, but the rate of property price increase is unsustainable. There's a problem when the majority of the population can't afford to buy a home (that is not subsidized by the government).

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#3) On August 10, 2009 at 8:58 AM, rofgile (99.40) wrote:

I support throwerw's comment - its right on the money.  When a chinese family buys a house - they bring a suitcase or bag filled with cash.  Bank based credit still hasn't become super available to individuals.  The extended family can also act as a support line to provide more money/credit.

 They might have an export bubble tho..

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#4) On August 19, 2009 at 4:51 AM, cbwang888 (25.53) wrote:

China stock market is now down 19% from its recent peak ...

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