James McKee

China’s Real Estate Crisis



Posted: Friday, January 14, 2011

by James McKee
http://www.forex.tradingcharts.com

A few years ago the United States experienced a very real and very catastrophic series of events that all but crippled the United States economy.  This sent shockwaves throughout the world’s financial markets and caused widespread economic hardship.  China is the world’s largest country by way of population and has the world’s largest capitol reserve.  Despite these facts the country is experiencing difficulties very similar to those in the US as they grow out of their industrialized roots.

China’s emergence into the world’s economy has been a long time coming, with the largest national population on the planet China has demanded to have a presence on the world’s stage and a presence it has been given.  However there have been some growing pains in China and the latest Chinese housing crisis has created a series of actual ghost cities throughout the country.  There are literally tens of thousands of abodes that sit vacant in addition to music halls and other auditoriums.

Entire cities are sitting vacant in China due to bloated property prices that were encouraged by speculators and investors.  China’s beautiful and enormous cities are going to waste and without the proper monetary policies they will continue to do so.  China’s government has begun to take steps to secure much of the debt it has acquired from the United States up until late, taking very aggressive posturing.

On the whole China is doing well compared to other countries in the west however this position will not last long if they do not find a way to make housing affordable for their citizens.  Those on the forex currency exchange should take note of any and all of China’s efforts to stabilize their housing costs.
Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the forex exchange rates regularly.
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