Thursday, October 27, 2011


Is this the opening signal of property value collapse in China?

Hundreds of angry home buyers launched a series of protests in China's commercial hub of Shanghai this week, as owners decried falling prices for their properties, state media said Thursday.

Hit by weak demand and lack of funding, developers have slashed prices for some new projects in the city by more than 20 percent, the China Business News said, causing an outcry among those who bought at higher levels.

Prices are way too high. But people have nowhere else to put their money and so have pushed the bubble higher and higher. I hope the Europeans aren't still counting on the Chinese to save their financial system.

Heck, I hope we aren't counting on the Chinese to continue financing our staggering budget deficits.