Category: Bubbles

China’s whistling tea-kettle

9 November, 2012 (09:00) | Bubbles, Capital control, China, Economics, Global news, Investment, Real estate, Speculation |

By:David A. Smith   A whistling kettle not only keeps the pot from exploding, it tells you the water’s boiling; it’s both a release valve and a signal.  And in China’s economy, as shown in this Wall Street Journal (October 15, 2012) article, the economic tea kettle is whistling loudly:   Capital pressure’s on the […]

China: What comes after the crest? Part 2, the global-economic consequences

21 June, 2011 (09:32) | Bubbles, China, Global news, Homeownership, Markets, Speculation |

[Continued tomorrow from yesterday’s Part 1.]   By: David A. Smith    Yesterday’s post used a June 9 fact-peppered Wall Street Journal article to establish conclusively that China’s residential property market has crested and that prices will start heading down.  That must inevitably trigger a substantial slowdown in the Chinese economy:   Real estate is a […]

China: What comes after the crest? Part 1, the housing consequences

20 June, 2011 (11:49) | Bubbles, China, Global news, Homeownership, Markets, Speculation |

By: David A. Smith   A top, Gertrude Stein never said, is a top is a top.   And I am on top, Alice   And a top is what the Chinese residential property market has now achieved, as demonstrated and believed (if not called) by a June 9 fact-peppered Wall Street Journal article:   […]

To firmly curb what no one has curbed before: Part 2, by market forces

31 March, 2011 (19:24) | Bubbles, China, Global news, Homeownership, Housing, Markets, Policy, Regulation, Speculation |

[Continued from yesterday's Part. 1] By: David A. Smith Yesterday we interpreted a Xinhua new story, about China’s package of new measures announced ‘to firmly curb’ high prices, as signaling two things: I am changing policy 1. There is a huge bubble in Chinese housing prices, and it continues to expand. 2. Within the Chinese […]

To firmly curb what no one has curbed before: Part 1, by orders

30 March, 2011 (17:05) | Bubbles, China, Global news, Homeownership, Housing, Markets, Policy, Regulation, Speculation |

By: David A. Smith    Though markets can be neither tamed nor capped, that doesn’t stop politicians from bravely announcing they will refute the Laws of Economic Gravity and Market Clearance, as revealed in this curiously incurious article from Xinhua:   China to firmly curb excessive rise of housing prices in cities   They’re splitting […]