Watch out for China’s ‘freak’ economy:This is the real danger to the global economy
By Brett Arends
BOSTON (MarketWatch) — Forget Greece. Forget Italy. Forget “Occupy Wall Street.”
The really ominous news right now?
It’s been the juggernaut carrying us all year. But Albert Edwards at SG Securities says the world’s second biggest economy is a “freak” and it’s starting to go berzerk.
What’s going wrong? How? Here are some troubling signs:
The housing bubble is finally bursting.
And we know how that story ends. Think: America, Ireland and half the West since about 2005. Think of Japan after 1990. Think of…well, every housing bubble in history.
The aftermath of a burst bubble is unmitigated disaster. That’s because housing affects everybody — middle-class families, developers, banks, local government. It’s the Spanish flu epidemic of real estate bubbles. There’s no containing it.
Take a look at the Chinese situation. The bubble has been as big as any we’ve seen.