In the United States, we can look back and remember our housing crisis, it just happened a few years ago. China now might have one looming on the horizon. But, there's a possibility that while it may happen, foreign investors will largely be protected as because much of China's markets are closed to foreigners, which gives some relief to the world as they remembered some of the global fallout from America's housing bubble bursting. But the internal fallout could be just as bad, hitting China's banking sector.
However, promising signs show, such as resilience in the labor market, which isn't starting to fall, indicating that perhaps the future is not as bad as it might seem.
Read the article here.
2 comments:
As of 2013 China is the world’s second largest economy even if the majority of their markets are closed to foreigners there will still be an effect on the global market. The United States is one of the biggest foreign investors within China so we have to account for things that are happening in China’s economy. Hopefully the backlash isn't too great.
One would think that the Chinese could take precautions based on what transpired in 2008 to avoid such an internal crisis.
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