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Wednesday, May 12, 2010

China Still Headed For A Fall

I have been blogging on this theme for one year this month*. I still maintain that the Chinese economy is getting ready for a huge collapse, along the same lines and for similar reasons that we had one in the USA.

Our economy was in the tank when home prices here fell by half. Is it different when home prices in China fall off by a third?

When china implodes and takes 1/4 or so of the world's manufacturing capacity with it, what does that do to the world economy? Is it possible that the Chinese collapse will be blamed in the minds of the people of China on the Communists? Will the Great Depression, China Edition lead to capitalism!?

Hat tip: Mish

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*Update: Whoops, make that LAST month.

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