Dislikedhttp://en.wikipedia.org/wiki/Rule_of_72
apply it to china. we are 20 years into high percentages of growth. some housing prices have gone up 20% a month. divide 20 into 72 and this is how long it takes for money (house) to double in value. so in a aprox 3.5 months a home in some areas has doubled in price. at some point these homes will cost more then they can sell for. at that point the mortgage holder (bank) will fail. 20% is high and not the norm but even at smaller amounts its still out rages. for the ones who bought last. when the...Ignored
So essentially a mess so large that the U.S. housing B.S. will look like it's not even on the radar screen.
To play devil's advocate, wouldn't it make more sense for China to spend their USD surplus while it's worth something? Even if it meant having empty buildings?
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