Mish's Global Economic Trend Analysis Thu 2010-07-22 15:46 EDT
Ponzi "Shark Loans" Fuel China's Housing Bubble; Home Sales Plunge 44% in Xiamen; Bubble Busts in Tianjin
China's property bubble is now on the verge of collapse. Transaction volumes are significantly down and declining volume is how property bubbles always burst. In simple terms, the pool of greater fools eventually runs out. In China's case, the pool of fools is heavily involved in "loan shark" schemes where speculators hope property values rise fast enough to cover the interest.
Bubble bust; Fuel China's Housing Bubble; Home Sales Plunge 44; Mish's Global Economic Trend Analysis; Ponzi; Shark Loans; Tianjin; Xiamen.