CHINA WILL BE A BIGGER BUBBLE THAN JAPAN
Superb analysis out of SocGen analysts this morning. Dylan Grice says the Chinese economy has many similarities to the Japanese economy before it imploded in the 90’s. He cites 8 reasons why the Chinese economy is likely to be an even larger implosion than the Japanese economy:
Studying the lessons from Japan’s lost decade(s) is key for anyone seeking to understand today’s post-bubble world. But a closer reading of Japan’s financial history illuminates today’s China far more. In the early 1980s, on the eve of its financial liberalisation, Japan was the rising power from the East set to overtake the West. Younger and growing rapidly, it was still a decade away from its climactic and catastrophic bubble peak. This is where China is now.
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