Wed 2010-09-15 19:16 EDT
Trapped Inside A Property Bubble
When China's real estate bubble finally bursts while exports become less competitive, the consequences could be severe...
property bubble Topic in The Credit Debacle Catalog
China's Property Bubble (2); further inflate China's property bubble (1).
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.
Tue 2010-04-20 10:58 EDT
Get the Yuan Right, Prove Pundits Wrong: Hype over an 'imminent' increase in yuan value ignores China's greater need for higher interest rates and fewer bubbles
Unless China exits its economic stimulus quickly, the nation's inflation rate could rise to double digit levels sooner than many expect. The right sequence of events for a proper response to inflation would be to raise interest rates and then, if necessary, move the yuan exchange rate. But acting on the currency first, especially in small steps, would further inflate China's property bubble and inflation, potentially leading to a major economic crisis in two years. A small increase in the yuan's value would fail to resolve two pressing problems: inflationary pressure at home, and political pressure from the United States. Moreover, a small appreciation would attract hot money, stoking inflationary pressure...
bubble; higher interest rate; hype; imminent; increased; proving pundits wrong; Yuan right; yuan value ignores China's greater need.