Roubini Topic Archive: Real Estate
The Chinese housing market is clearly undergoing a correction that may eventually bring housing prices back to a more reasonable level. As the past several years have made all too apparent, housing downturns are economically painful and can lead to larger economic crises. The network of financial leverage that fueled the US housing bubble turned […]
The importance of the property market to China’s investors, savers and banks is well known, but its impact on local governments is less well understood. The ability of Chinese local governments to service the debt they have built up over the past several years, 10.7 trillion RMB at the end of 2010, relies heavily upon […]
Nicholas R. Lardy explains China’s nuanced approach to letting the air out of its housing bubble, providing potential lessons for the United States.
Steve Weisman: Is China undergoing an asset and housing price bubble similar to the one that the United States went through that led to the current crisis? This is Steve Weisman at the Peterson Institute for International Economics with Nicholas Lardy, senior fellow at the Institute, who’s been studying China and looking at this phenomenon recently. Thanks, Nick.
Nicholas Lardy: Thank you, Steve.