Unfinished blocks of flats stand at a residential complex in Guilin, Guangxi Zhuang autonomous region, on September 17. The struggles of China’s property market are reminiscent of the woes that plagued its US counterpart before the 2007-08 global financial crisis. Photo: Reuters
Unfinished blocks of flats stand at a residential complex in Guilin, Guangxi Zhuang autonomous region, on September 17. The struggles of China’s property market are reminiscent of the woes that plagued its US counterpart before the 2007-08 global financial crisis. Photo: Reuters
James David Spellman
Opinion

Opinion

James David Spellman

China real estate and global debt woes show problems that led to 2008 financial crisis remain

  • History shows that easy money inflates asset values but everything eventually comes crashing down in a reversion to the mean
  • The global financial crisis was a textbook example, and its trajectory suggests a replay is likely soon

Unfinished blocks of flats stand at a residential complex in Guilin, Guangxi Zhuang autonomous region, on September 17. The struggles of China’s property market are reminiscent of the woes that plagued its US counterpart before the 2007-08 global financial crisis. Photo: Reuters
Unfinished blocks of flats stand at a residential complex in Guilin, Guangxi Zhuang autonomous region, on September 17. The struggles of China’s property market are reminiscent of the woes that plagued its US counterpart before the 2007-08 global financial crisis. Photo: Reuters
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