by John Rubino
Pretend you’re a country that over the past decade has engineered the mother of all real estate booms, in the process encouraging your citizens to load up on houses, apartments, raw land, anything related to the property sector. Your households now have 74% of their wealth in real estate, versus only 28% for those house-mad Americans. You’re China of course.
[…] Now assume that your real estate bubble is in danger of bursting, as a giant property developer implodes under the weight of its Ponziesque financing schemes, threatening to impoverish millions of people who one way or another are exposed to its failed projects.