China's second largest financial bubble in the world

Source: Internet
Author: User
Keywords Bubbles China China
Tags economic growth financial financial crisis financial services information information times internet internet +
Information Times December 20 News Times Comprehensive report of the United States magazine Forbes recently selected the world's seven imminent financial bubble, said gold, real estate, stock markets, bonds and other investors focus on the investment also has a latent bubble.  Among them, China's real estate market ranked second in this ranking. The three bubbles make them miserable when investors look back on what has been the most hurt for them over the past decade: Internet stocks, real estate and financial services, Forbes said.  These three categories breed huge bubbles and ultimately become the initiator of the financial crisis. In the next 10 years, gold is most likely to be the first bubble, as gold has risen nearly 300% since 2000.  Another possible bubble comes from China's property market, but the bubble can be avoided. The paper also analyzes China's economic growth looks "suspiciously" in the run-up to the Japanese and US markets: economic growth is a boon to loose monetary policy, and big developers rely heavily on financial leverage (using bank loans to develop real estate) and the so-called "Forever price rises", Artificially pushing up real estate prices, thus creating bubbles. It can be avoided because, of course, there is a huge amount of non-performing loans, but China's state-owned banks will not go bankrupt, bankruptcy is only partially insolvent mortgage lenders. Wang Chang's bubble list 1. Gold Comment: Gold has risen by more than 300% in the past decade, in part because investors think gold is the best reserve investment in the financial crisis.  Gold does not generate any real income, but the trend towards rising gold prices is always tempting for investors. 2. China property market Reviews: China's rapid growth is largely determined by loose monetary policy.  China maintains a low exchange rate and promotes the development of domestic demand, which on the other hand has contributed to the virtual high price of real estate prices. 3. Emerging market Reviews: With the decline in investment in the US market, emerging market investment in 2009 made a huge profit return.  Rising volatility in emerging markets is not a good time to invest.  4. U.S. Treasury comments: When the U.S. fiscal record of the budget deficit, even Warren Buffett are lamenting the 2009 U.S. Treasury debt bubble. 5. University tuition Reviews: Over the past 20 years, college tuition has doubled.  With parents unwilling to pay, schools have to cut spending, and even some Ivy League schools have to go bust.  6. Trading Fund Reviews: Industry indices and some products that are closely related to trading and trading funds have been popular since the last recession, but they have been too fast to be risky. 7. Copper Reviews: In just 3 years the price of copper rose from $1.5 a pound in 2004 to 4 dollars a pound. Prices have rebounded to a peak since then, despite falling back to 2 dollars a pound in 2008 years.
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