China Facing “Boom, Bubble, Bust”

26 Mar

From BusinessWeek:

China appears on track for an “asset boom, bubble and bust” that may take three years to play out and probably won’t be thwarted by tighter economic policy, Citigroup Inc. economists said.

Citigroup joins hedge fund manager Jim Chanos, Gloom, Boom & Doom publisher Marc Faber and Harvard University professor Kenneth Rogoff in warning of a potential crash in China.

“What is policy in China doing about the threat of overheating in the financial and real economy?” Buiter and Shen said. “The short answer is: not much, and not enough to prevent the creation of what could become a major asset boom, bubble and bust.”

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