Monday, November 28, 2011

China's economy collapsing?

Is China's economy on the brink of collapsing?  Some well-known China watchers and market players seem to think so.

The Los Angeles Times article, "Predictions of an economic collapse in China are in vogue," describes the difficulties that belie the reported robust economic growth in China.  Key economic issues include a bursting housing bubble and the effect on China's economy of slow economic growth in Europe and the United States.

It is also suggested that China's economic problems could cause major disruptions in the global economy.  (Since China is not a major importer of retailed products, perhaps the global economic issue would be reduced consumption of raw material -- this could be positive for the rest of the world.)

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