Is China Next?

Eighteen Chinese cities have taken steps to stimulate property markets, reports China Daily, from extending mortgage paybacks to reducing taxes. And the national government is contemplating it own regulatory changes. China’s bubble might even leave a bigger mess than ours: sales in Beijing during a peak buying time were down 72 percent versus last year. The property market is “the backbone of China’s state revenues” which is why “Some Chinese economists caution that a worsening slump would not only undermine the healthy growth of the economy, but also but the country’s financial system at risk.”And “there are fears that domestic financial institutions might be caught in the same dilemma as their U.S. counterparts.”