The Writing on the Wall

According to this Newsweek article, the warnings are all written on the wall in respect of China’s unsustainable asset bubble, with imbalances even worse than those experienced in pre-bust Japan in the 1980s. It also gives a succinct analysis of how a probable US meltdown caused by the current credit crunch could trigger the inevitable implosion of China’s bubble, which has been formed out of two decades of over-reliance on fixed asset investments and export growth and further compounded by excessive speculation in the stock and real estate markets.

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