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To: cmdjing
There actually is no real estate bubble forming in China.

The same claim some Americans are making to deny the problem. It does not matter whether bubble concentrated on small regions. What matters is the amount of money that went into speculative investment. The bubble forms on prized real estate located at economically strategic locations, which mostly make up small fraction of geographical area of a country. However, amount of money poured into such an area could be a significant portion of a country's available money.

It is especially bad if leveraged financing is done.

8 posted on 08/12/2007 8:41:58 AM PDT by TigerLikesRooster (kim jong-il, chia head, ppogri, In Grim Reaper we trust)
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To: TigerLikesRooster
What matters is the amount of money that went into speculative investment.

What really matters is the amount of panic that can be generated. It's panic that causes crashes to be worse than reality calls for.

9 posted on 08/12/2007 9:00:35 AM PDT by aimhigh
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