The emperor may, in fact, have no clothes.
On the heels of the European debt crisis comes a deepening fear that China's boom is unsustainable. A new report from Bloomberg illustrates just how precarious China's soaring growth may be. According to its study, the debt of China's local government financing companies, used to fund the construction, may total $622 billion. That figure may not be so startling on its own, but this apparent gross underreporting is one of several reasons I'm afraid China's real estate bubble is full of hot air.
Read Full Article »