Sub-prime Crisis with Chinese Characteristics
China’s economy is still booming despite the sub-prime crisis in the US. However, a mini-crisis may be in the making. Housing speculators, with the help of or in collusion with builders, have pushed up the housing prices so high that any real downward adjustment may trigger the mini-crisis, especially after the Olympics. Many have bought in to the real estate with 10% oIt may not be as bad as the US sub-prime crisis but things could get ugly.
