You cool the market--you cool it too good!

WSJ article by Andrew Batson—a favorite.

China’s government has spent a lot of effort pouring cold water on the red-hot real estate market, and it has apparently succeeded.

Now experts cite a “period of paralysis that some industry executives say will last for months, weighing on global growth prospects already battered by Europe’s turmoil.”

Hmm.  Be careful what you wish for, I guess.

The rebound in real estate was considered a prime driver of China’s successful recovery from the global financial freeze.

Still, something had to give with China’s unreal growth this year.  People are describing a 20% haircut in prices—stretched out over months.

Not so bad.