Monday, July 11, 2011

Once China stops propping up the American housing market, how much further will prices there fall?

Nice article, good reading, but its over a month ago. And China didn't prop up the American housing market. China's extensive credit may have helped to some degree, but certainly was not the fundamental driver. The fundamental drive is between perception of return on capital gains vs interest rate of the loan. Economics is all psychology my friend.

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