We Are In Serious Financial Doom: Hong Kong, Vietnam and China Are On Verge Of Another 2008-Like Financial Crisis While The Euro Zone Locked Into Permanent-crisis Mode And The U.S. Is Bogged Down With Debt, Economic Stagnation And Political Paralysis | InvestmentWatch
The current Asian credit boom is much like the credit explosion in Ireland and the Baltic countries in their run up before the 2008 financial crisis, the report warns. The situation is particularly dangerous in Hong Kong, Vietnam and China.
In , the country’s property bubble is already popping. Property prices are falling, more loans are defaulting and economic growth is weakening.
“Private-sector credit as a share of gross domestic product [in Asia] has surged over the past few years and is now at an all-time high,” Capital Economics states, according to CNBC.
Hong Kong has been trying to control its boom in property prices by increasing taxes on home purchases by companies and nonpermanent residents in order to increase the supply of homes and limit the influx of buyers from other parts of China, Bloomberg reports.
It is here that we get the first glimpse of the true sheer extent of the Chinese credit bubble, which as the chart below shows, is already the largest in the entire world.
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