1990 Japanese Real Estate Bubble and the Chinese Parallel

« « Real Estate Investor’s Community Approach | Balance Your Home Business and Family Will Keep from Burning Out » »

1990 Japanese Real Estate Bubble and the Chinese Parallel

Saturday, May 5th, 2007 Subscribe To Our Feed

The Japanese economical bubble burst during the 1990s partly because of the burst of its real estate bubble.

There are a lot similarity in economical development and bubble burst between Japan’s past and China’s today.

Japanese accumulated enormous wealth by becoming the global leader of manufactured goods in 1980. The Japanese banks had to find ways to lend the money out which triggered a land speculation in Japan which valued Japanese land the most expensive in the world. The real estate bubble in Japan ultimately burst, dragging along Japanese economy into a painful 15 year recession.

China now is at the peak of its manufacturing boom. Will China’s housing boom burst, following the same Japanese fate? Judging from frenzied real estate speculation in China, it does have a great deal of risks.

But will China learn from the historical lessons of past real estate bubble? Only history will tell.

Resource: www.sjsu.edu/faculty/watkins/bubble.htm

Share and Enjoy:These icons link to social bookmarking sites where readers can share and discover new web pages.