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!