Risk of China's Bubble

The market needs to take note of the growing concerns of a big bubble in China, particularly in stock and real estate, says Rhonda Staskow, senior currency analyst at Action Economics. She tells CNBC's Amanda Drury that it could be a risk for the Aussie dollar.

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[pinoko1311]

are chinese really considering the maintenance costs of infrastructure?

[sfsTrader]

@herbs814 yeah with china they are still pretend to be communists and so some things are hard to do or dont make sense. but however u do it, profit from their real estate prices hitting a plateau and dropping.

[herbs814]

China's "infrastructure" economy has wastefully built enough empty real estate for 200 million people that can never be filled. A China collapse in inevitable. But the 2010 China collapse, as massive as it will be, will be just the beginning. Over the next 10 to 20 years, China's economy will only suffer worse contractions.

[herbs814]

@sfsTrader

not sure you can short chinese real estate because of their restrictive investment laws, but you can short copper and other building materials.

[herbs814]

@mathpianist93

You're confusing current birth rates with past birth rates. From 1955 to 1975, Japan's birth rates increased about 35%. (not until later did Japan's birth rates decline.) Developed nations are most productive (highest production, earning, spending, investment, ownership) around 45-50 YO. Do the math. Japan should be increasing in economic strength roughly 2005-2025.

China's 1980 policy will dramatically HARM China by 2025. Look for a sudden collapse because of one child policy

[RakeBone]

that blond is a hottie

[mathpianist93]

@herbs814: you contradict yourself at times, and on many terms. 'sealed its fate with the one child policy'. well isn't the Japanese populace partially to blame for their declining birthrate? they will NOT be resurgent with this current demographic risk.

China has been ascending since the 1980s, long before Bush II's and Obama's policies set the US on a possibly inevitable collapse. and Americans surely treasure the 1990s

[mathpianist93]

@herbs814: LIES. YOU are the delusional one in claiming you have no anti-Sino prejudice. 'China's collapse will be a blessing to the world' shows that

[sfsTrader]

sounds like people have made their money in chinese real estate. now lending will tighten to slow things down and give the smart people a chance to sell for profits. then prices will collapse and all the dumb people will take the hit.

get ready to short chinese real estate

[lastmohicanfromchina]

check the time, she is great! she is right .!china will die with the burst of real estate bubble