S. prior to the collapse of prices. As real estate accounted for 6.1% of all of China's GDP growth last year. This is the same level as the U.S. during 2005 and Japan during the 1980's. Commenting about what was taking place Citigroup analysts observed, "It's evident that property prices are no longer sustainable once the residential investments achieve above 8% of nominal GDP, and China may not be an exception." ("China Housing Market Nears U.S. And Japan") This is significant, because this information supports the hypothesis that a real estate bubble is developing in China. As prices could be in the process of rolling over, this will have an adverse effect on the economy.

The article that was written by Silverstein (2011), talks about the possible negative impact of the real estate bubble bursting. As he believes, that this could plunge the world into another deep recession. Once this...
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