• 15 Posts
  • 10 Comments
Joined 1 year ago
cake
Cake day: June 11th, 2023

help-circle








  • silence7@slrpnk.netOPtoWorld News@lemmy.worldChina’s Economy Is in Serious Trouble
    link
    fedilink
    English
    arrow-up
    22
    arrow-down
    3
    ·
    10 months ago

    Per the article:

    Now, these problems have been fairly obvious for at least a decade. Why are they only becoming acute now? Well, international economists are fond of citing Dornbusch’s Law: “The crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought.” What happened in China’s case was that the government was able to mask the problem of inadequate consumer spending for a number of years by promoting a gigantic real estate bubble. In fact, China’s real estate sector became insanely large by international standards.