Even the Washington Post painted a bleak picture of the Chinese situation, explaining how the risks of the growth of a dangerous speculative bubble is clearly visible.
The main concerns are primarily real estate prices, a marked growth in many Chinese cities: shared fears, moreover, by the same government in Beijing yesterday spoke of excessive price growth in some localities, underlined the necessity of capital flows continuous monitoring, in order to stop especially hedge funds.
Then to make the bubble worse there are the interest rates set by the Chinese central bank at its lowest level in response to the global economic crisis. Explosive mixture, which brought the cost of the brick in Shanghai and Beijing to double in less than 4 years. And the outlook is for further growth.
Therefore, according to many analysts, it could repeat the situation has already been tried in Japan in the 80s and the United States in 2008, even if somebody is not as pessimistic and talk bubble for now supported by the strong purchasing power in the Internal Market .