He says the housing bubble is blocking economic reform because disposable income is going into housing. A decline in home prices will lead to faster rebalancing as assets come out of the real estate sector and flow into the economy. He says the government shouldn't fear a drop in revenue and a decline in infrastructure development.
My take: China's government leaders need to trust in the free market and let their economy stand on its own. Propping it up with government directed investment and a real estate bubble is a recipe for stagnation. Let the people spend and invest.
中国房价可能很快会跌25% 财富转向居民
Aussie retail recession deepens as households buckle
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Australia’s world-record decline in household disposable income continues
to drag down retail sales. The Australian Bureau of Statistics (ABS)
reported t...
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