China Bubble or Breakout?

by Martin Armstrong
Armstrong Economics

QUESTION: I’m a reader from China and one of the big fans of you in our country. I want to ask you a question and would be very happy to get your reply. If my memories are correct, you have been a bull of China and praised Chinese leaders for their competence. But in reality, Chinese people are very disapproval of the government, to be more exactly, hate and curse! As you know, aside from problems of severe pollution and food safety,China has a very big housing bubble and the price is well beyond people’s purchasing power. Many young people had to use their parent’s retirement savings or even borrow the rest from relatives as down payment to buy an apartment so they can get married. On the other hand, most Chinese public servants have many many suites of apartment——to hide their bribery money in many cases. Corruption is widespread in China, everywhere. People are yearning for democracy and election, and not trust one-party politics anymore. Also, many people are expecting a crash of china’s housing market. Sadly enough, they have been expecting for many years but the price just won’t stop rising.

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