Robert Wenzel reports a Roubini tweet that the real government debt-to-GDP ratio in China is 80%.
INVESTMENT DISCLOSURE: None. Still in cash (and index-linked National Savings Certificates), and missing all those day-trading opportunities.
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A column by Paul Krugman today points out that China is also headed for a real-estate bubble.
A high ratio of government debt to GDP is not a problem if the ratio of private debt to GDP is low.
Of course, a real-estate bubble would indicate high levels of private debt.
Agreed, A.
Merry Christmas!
P: 64 million unoccupied residential units, for a start, I understand, P.
And the mortgages are even being funneled through places like pawn shops.
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