One of the world’s few remaining real estate bubbles finally seems to be losing air. Real estate transactions have slowed so quickly that in the last two weeks, brokerages across China have laid off thousands of brokers and closed hundreds of offices.
So Europe is basically broke and fighting over who will pay for what. America is broke, with the Fed having to buy up treasury bonds because nobody else will. China is an export-based economy selling basically to America and Europe, but has also been artificially tinkering with their monetary value. I think China has a lot of room to grow, but that their command economy has let them to seriously misallocate resources. Is the faltering of their real estate market the first sign of worse to come?
No comments:
Post a Comment