Monday 19 December 2011

Chinese Credit Bubble Is Bursting

Chinese Credit Bubble Is Bursting

Another scary story from China - Apparently, the problem is not restricted to real estate prices crashing!!!

  • Chinese credit bubble starts bursting - "The BRICs are falling like bricks and the crises are home-blown, caused by their own boom-bust credit cycles. Industrial production is already falling in India, and Brazil will soon follow." - Albert Edwards at Societe Generale. This particular article, however, sticks to the crisis building up in the most secretive of the BRICs countries - China. If the article is indeed reliable, the impact on the global economy and the markets would make the Greek Crisis appear to be a minor pin-prick!!! (Oh! Before I could post this item on the blog, I just happened to read a forbes article which talks more about the Chinese real estate bubble - Chinese Property Prices Crash - Is this a bubble???)

While I've started sounding increasingly pessimistic in my blog posts of late, unfortunately, my worry that I may still be too optimistic and may actually be grossly underestimating the problems in the global and domestic economies. What's worse, I can't think of any meaningful manner in which we can actually shield ourselves from the coming onslaught of global financial chaos.

2012 looks bleak.

Perhaps the Mayans actually saw it coming!

Regards,

N


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