Following on from the news that China has now had two quarters of low growth (a recession compared to China's recent growth) is this article in the Washington Post. China’s credit market has been in a bubble for years, with too much
lending and borrowing, similar to what happened in the United States
during the financial crisis. All that lending helps grow the economy
until, one day, the bubble bursts, and it all comes crashing down, as
happened the United States. China’s economic growth has been slowing,
making a similar a crisis more likely. Chinese leaders seem to be trying
to prevent a disaster by basically popping the bubble, a kind of
controlled mini-collapse meant to avoid The Big One. Really bad news.
More here:
This is VERY Bad News
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