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China is looking more and more like a disaster waiting to happen, as the Shanghai stock index...

China is looking more and more like a disaster waiting to happen, as the Shanghai stock index has tanked 6% in the past week to its lowest close since March 2009. "China's credit bubble has finally popped," Ambrose Evans-Pritchard writes. "The property market is swinging wildly from boom to bust," which always ends badly, and there’s little reason to think China will prove an exception.
Comments (3)
  • TruffelPig
    , contributor
    Comments (4106) | Send Message
    Someone please tell all Chinese people that they should invest in US stocks! Much better investment!
    15 Dec 2011, 06:34 PM Reply Like
  • Jolly_Rancher
    , contributor
    Comments (563) | Send Message
    A Chinese bust could be a good thing for the US economy because Chinese deflation means not only lower prices for US consumers but also lower basic material prices, esp. oil. Note the weak price of gold. This will be a positive for Japan also, and the EU. Any time a BRIC suffers, the US gains because BRICs have few consumers buying our goods. The US is a huge net importer. So in the event of Chinese deflation, the US trade deficit should fall. The situation is not our fault. First, the Chinese deliberately created a huge construction over-supply. Second, the Chinese refused to be consumers. Instead, they plied their "savings" into worthless unoccupied condos and office buildings.
    15 Dec 2011, 08:38 PM Reply Like
  • Joe Dirnfeld
    , contributor
    Comments (1128) | Send Message
    A necessary condition for a bubble is leverage. Is the real estate mkt in China highly leveraged, or is it the usual fear mongering nonsense I've been reading for years from all the bubble heads.
    15 Dec 2011, 10:20 PM Reply Like
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