| Bloomberg prediction about impending China housing bubble burst and bank problems |
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August 4, 2010 Link
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By Joseph J. Dehner
Attached is what amounts to a pessimistic prediction from a Bloomberg report today, regarding Chinese real property prices and an impending serious decline in values, to be followed by banking write-offs of enormous scale. No one has a crystal ball, but this type of report has its own power of consequence, in an age where China's top 5 banks have some of their shares publicly traded, and so are not immune from the market forces of bull and bear. A 60% home price drop (as the headline notes) would be an earthquake compared to the tremor experienced in the USA in the past 3 years. Buckle seat belts.
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