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To: Sun Tzu who wrote (5211)8/22/2022 7:39:04 PM
From: Real Man  Read Replies (1) | Respond to of 10709
 
I really don’t have a clue, but the guy said it’s a real estate bust on enormous leverage, with Chinese nuances.
Who in the US would take out a mortgage 15x your annual salary when the apartment was not even built yet?
I can understand pissed off people. That aside, you are probably right that Chinese real estate bust will probably cause inflation here, although I don’t see the connection. Inflation in China is close to 0 now on that bust. It seems very likely they sell US treasuries to defend the yuan now because they have to keep rates low.

US and China switched places inflation wise, but the trade imbalance is still the same. My question: how do China real estate woes affect us? It’s not like Shanghai composite has any correlation with SP500.