Why The Record Drop In Chinese House Prices Suggests Beijing Is Already In A Recession

Why The Record Drop In Chinese House Prices Suggests Beijing Is Already In A Recession (ZeroHedge, April 18, 2015):

If one compares the history of the Chinese and US housing bubbles, one observes that it was when US housing had dropped by about 6% following their all time highs in November 2005, that the US entered a recession. This is precisely where China is now: a 6.1% drop following the all time high peak in January of 2014. If the last US recession is any indication, the Chinese economy is now contracting! So much for hopes of 7% GDP growth this year.

Leave a Comment