China: Economic Threat?, Yakezie Round Up, Uncommon Money News
|August 10, 2010||Posted by Roshawn Watson under Uncategorized|
By: Roshawn Watson
Housing is VERY expensive in China. In fact, it is so expensive that several analysts are calling it a housing bubble. Perhaps you are asking why should I care? Well, consider that any problem in the housing sector, because it is so subsidized with loans, ultimately shows up in the banking sector. The banking sectors affects A LOT of other economic areas. Remember, this recently happened in the U.S. & Europe.
In Beijing, homes are selling for 27 times income. Thus, if you earn $50,000/year, you are trying to purchase $1.35 million home.Of course, you can see the problem.
Banks are owned by the government, so there are some controls. However, things are getting REAL dicey. Chinese regulators have recently asked banks to conduct a stress tests to gauge to effect of a 50-60% drop in home prices. That’s about double what the worse market in the US suffered during the worse of our housing crunch. Additionally, there are believed to be many speculators in the Chinese housing market. For example, a couple hundred thousand apartments that are own registered no electricity usage, suggesting that the homes are just not occupied.
Perhaps the overall economy may continue to outperform analysts estimates, but we will have to see. It is time to rethink the global exposure of your portfolio.
Question:What do you think the greatest threat to our economy is?
Now, it’s time to do the weekly Uncommon Money News and Yakezie Round Up.
Uncommon Money News and Yakezie Round Up
In preparing to write my posts, I often come across noteworthy and sometimes bizarre financial and business news. Below are links to some of these sites. Enjoy!
Festival of Frugality #241: A Midsummer’s Night Dream Edition hosted at Yes, I am Cheap, Ditch The Boss‘s Financial Independence Compilation.
Both carnival linked to Hey Broke People, Stop Overpaying For College!
I was also extremely grateful that a few articles were picked up in round ups.
- WiseBread’s Best Money Tips: Escaping The Mundane linked to Are the Rich Walking Away from Million Dollar Mortgages?
- Barbara Friedberg‘s More Summer Reading Guide included Hey Broke People, Stop Overpaying For College!
- Squirrelers‘ Updates and Favorites linked to Economists Blame ME for the Slow Recovery
- Nasdaq’s Comminty cited Will The Dow Really Drop By 90%? in a post entitled Could Be Facing Deflation; How to Cope
- Joe Plemon’s (Personal Finance By The Book) Back to School Roundup linked to Hey Broke People, Stop Overpaying For College!
- Kevin at Invest It Wisely linked to Economists Blame ME for the Slow Recovery in his Weekend Reading: Me and My Money
Surprisingly, I inspired one fabulous post and a round up title at some awesome PF sites!
Robert’s (DIY Investor) Coping with Emotions While Investing was inspired by a comment I made about keeping your emotions in check during the roller coaster us investors have been riding
Posts of the Week
Coping with Emotions While Investing
Entertainment Money News
The Other Guys Beats Inception
Personal Finance (Yakezie and PF blogger Friends)
40 ways to save on almost anything
3 Amazing Career Tips (Barbara Friedberg) Can quitting make you a winner?
How Mutual Funds Rip You Off* (Invest It Wisely) Fees and Charges Decimate Returns
Blogher 10 (Bucksome Boomer) Read about her adventures at Blog Her
Coping with Emotions While Investing* (DIY Investor) – Absolute must read for investors
Watson Round Up ( Joe Taxpayer) – Lists some absolutely fabulous reads plus mine!
Copyright 2012, Roshawn Watson, Pharm.D., Ph.D. All Rights Reserved.