Real Estate Leverage the Prelude to Financial Crisis

Huang Jifan of the Chongqing delegation to the NPC said rising leverage is against he spirit of the central government.
According to the China Economic Times reported that Huang Qifan Chongqing delegation discussed during the two sessions, said the current real estate appear in Canadian leveraged way to inventory, which runs counter to the spirit with the central and risky.

Anticipation For example, such as the recent real estate transactions there are some real estate agency - some real estate transactions in the agency, they offer to the buyers down payment support. Home loans down some of our banks have dropped 30% from the original 40% to 20% now have some, if real estate agency or intermediary to give people who buy a 10% to 20% down payment to buy a house actually makes people become zero down payment, or 5%, 10% down payment - the US subprime mortgage crisis is the source of zero down payment, a month or two months will unthinking Rate jumped 30%, 50%. 3000 points to 5000 points consequences of this and the stock market last year due to high leverage is the same.

Similarly, the Chinese property market has also experienced a similar situation. March 1, the Shenyang municipal government issued new property market, not more than five years to graduate college, secondary vocational school graduates "zero down payment" policy. Although the same day, in response to public opinion, namely Shenyang official, referring to the "zero down payment" policy is still in the early stages of research and demonstration, have temporarily introduced conditions. But industry analysts pointed out that from an economic level, this is to increase the leverage third-party banks, the risk is very serious.
iFeng: 黄奇帆:楼市高杠杆也是金融危机的前奏

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