Asian Financial Crisis
With the high Real Estate prices, low interest rates, and large sums that have been borrowed in Real Estate throughout Asia; surely others can see parallells leading up to the next Asian Financial Crisis. A bathroom attendant who just paid 6 million for a property can't pay the mortgage in 5 years when rates are 5%. He won't be able to sell it, because it is now worth 3 million. What does he do? DEFAULT. It isn't just a US phenomena.... in fact, the US mortgage crisis was mild compared to the future Asian crisis..... yes, I know, the HKMC will take care of it all. Right. Thoughts? more importantly, the China crisis will be a new beast to tackle as small and medium size banks go bust.