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.