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China Exhibits ‘Danger Signals’ as Prices Surge, Faber Says
Posted By admin On April 21, 2010 @ 4:04 am In World News | Comments Disabled
Chia-Peck Wong and Liza Lin
Wednesday, April 21st, 2010
China’s “excessive” credit expansion and surging real estate prices are “danger signals” that growth is peaking, investor Marc Faber said.
“There are some symptoms of a bubble building in China, with the increase in foreign exchange reserves, rapidly rising property prices,” Faber, the publisher of the Gloom, Boom & Doom report, said in a Bloomberg Television interview today. “From here on, the China economy will slow down regardless. Whether it will crash this year or later, I don’t know.”
China, the world’s third-biggest economy, yesterday ordered developers not to take deposits for sales of uncompleted flats without proper approval. This adds to curbs on loans for third- home purchases, increased down-payment requirements and higher mortgage rates announced in the past week, after property prices in 70 cities jumped a record 11.7 percent in March.
China’s economy grew 11.9 percent in the first quarter, the most in almost three years, fanning concern that record lending is creating asset bubbles. The government has twice this year told banks to set aside more reserves and pace credit growth.
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URLs in this post:
 Bloomberg: http://www.businessweek.com/news/2010-04-21/china-exhibits-danger-signals-as-prices-surge-faber-says.html
 Image: http://infowars-shop.stores.yahoo.net/post4rioffe.html
 China Gold Demand May Double Within Decade, WGC Says: http://www.prisonplanet.com/china-gold-demand-may-double-within-decade-wgc-says.html
 Faber Says Buy Gold Explorers Backed by World’s Biggest Miners: http://www.prisonplanet.com/faber-says-buy-gold-explorers-backed-by-world%e2%80%99s-biggest-miners.html
 Odds of Global Recession Are 100%: Marc Faber: http://www.prisonplanet.com/odds-of-global-recession-are-100-marc-faber.html
 China Increases Gold Reserves 76% to Fifth-Largest: http://www.prisonplanet.com/china-increases-gold-reserves-76-to-fifth-largest.html
 Marc Faber Sees No Bubble in Gold Price Run Up: http://www.prisonplanet.com/marc-faber-sees-no-bubble-in-gold-price-run-up.html
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