If you read Instapundit, you would’ve seen a link covering China’s potential economic bubble today:
The froth is going into property. Experts argue heatedly over whether or not China has managed to outdo America’s subprime bubble, or even match the Tokyo frenzy of late 1980s. The IMF straddles the two.
It concluded in a report last week that there was no nationwide bubble but that home prices in Shenzen, Shanghai, Beijing, and Nanjing seem “increasingly disconnected from fundamentals”.
China’s economy is almost entirely based on exports. Mainly exports to the United States. And with Obama and his Democrat henchmen working overtime to keep us economic crises mode, the Chinese economy is going to have a hard time hanging on and continuing to purchase our debt.
If this trend continues, we could be facing a tough economic road ahead.
It is also interesting that the Chinese are predicting our recession will continue until 2012. I wonder why that is.
Just thought I would point this out…