April 14, 2014

CHINA’S PROPERTY MARKET COLLAPSING? “Premier Li Keqiang has a few tools at his disposal, but they look insufficient to stop a general collapse of property prices across the country. The problems, deferred from late 2008 with massive state spending, have simply become too large. And we must remember that he works inside a complex, collective political system that is generally unable to meet challenges swiftly. But that does not matter. There is little any leader can do. Collapses occur when people lose confidence. That is now happening in China.”

That sounds terrible. Luckily, we face no such problems.