China or bust

By Brian Easton In Economy

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7th August, 2010
The question was asked aggressively, and came from the Australian-Chinese businessman as we sat down for lunch: "Is there a bubble?" I avoided a direct answer; I had only briefly visited China, but I knew what he was on about. The Chinese economy is trying to drag the rest of the world out of this great recession. But isn't it vulnerable to a financial crisis, too? Because housing is part of the root cause of the Western crash, there is much concern about the Chinese housing market, where prices are absurdly high. If that bubble bursts, some households and some lenders will be ...

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