Slowing chinese real estate prices a big risk to america
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Slowing chinese real estate prices a big risk to america

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A slowdown in the Chinese real estate market would have severe global ramifications, possibly causing more damage to the U.S. economy than the eurozone crisis.

A slowdown in the Chinese real estate market would have severe global ramifications, possibly causing more damage to the U.S. economy than the eurozone crisis.

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Slowing chinese real estate prices a big risk to america Slowing chinese real estate prices a big risk to america Presentation Transcript

  • AboutUsWe publish Profit Confidential daily for our Lombardi Financial customers because webelieve many of those reporting today’s financial news simply don’t know what theyare telling you! Reporters are trained to tell you the news—not what it can mean foryou! What you read in the popular news services, be it the daily newspapers, on theinternet or TV, is the news from a “reporter’s opinion.” And there’s the big difference.Topics GuidanceGold Stocks Investment GuidanceStock Market Retirement PlanBear Market Chinese StocksBull Market The Best StocksUS Dollar Gold Stock PickingEuro Real Estate InvestmentInterest Rates Real Estate Market www.profitconfidential.com
  • Slowing Chinese Real Estate Prices a BigRisk to AmericaBy Michael Lombardi, MBA for Profit ConfidentialFalling Chinese real estate prices are becoming a bigconcern…and the after-effect could reach America.Sixty-six million people live in Beijing, Shanghai, Guangzhou andShenzhen and these four big cities are seeing the price of homessoftening. Chinese real estate prices could fall as much as 20%to 30% next year in these cities, according to a story in BeijingBusiness Today. www.profitconfidential.com
  • As you may recall, the Chinese government, fearing speculationin the Chinese real estate market, raised home down paymentrequirements and mortgage rates in April to cool the housingmarket. These steps may have gone too far, cooling the Chinesereal estate market too quickly.As China’s economy has grown so fast, as the country hasbecome a big world-buyer of materials related to home building,materials companies have looked at exports to China as anoffset to the pathetic American new home construction market. www.profitconfidential.com View slide
  • The big fear is that a hard landing for the Chinese real estatemarket could mean a hard landing for the Chinese economy, theeconomic ramifications of which could be felt worldwide.According to the Bureau of Economic Research, the grossdomestic product (GDP) of the U.S. was about $14.7 trillion in2010—that’s a 46% increase in our GDP since 2001. The GDP ofChina was $5.9 trillion in 2010—a 353% increase in China’s $1.3-trillion GDP of 2001. www.profitconfidential.com View slide
  • Now here’s where it gets reallyinteresting…Back in 2001, the economy of the U.S. was 7.8 times bigger thanChina’s economy if we look at the GDP of both countries thatyear. Last year, the U.S. economy was only 1.7 times bigger thanChina’s economy, again according to GDP numbers. Oureconomy is simply growing slower as China’s economy growsfaster. And American companies are becoming more and morereliant on demand for goods from China.As China’s economy has grown so rapidly, be it the preciousmetals, infrastructure, or strategic non-Chinese companies—theChinese have been busying either buying them or financingthem, as the country remains focused on bringing its 1.3 billionpeople into either the working class or middle class. www.profitconfidential.com
  • A pullback on Chinese real estate prices would slow the Chineseeconomy dramatically, possibly forcing China to pull back onforeign investment.A slowdown in the Chinese real estate market would havesevere global ramifications, possibly causing more damage tothe U.S. economy than the eurozone crisis. www.profitconfidential.com
  • Thank YouFor more information visit our website http://www.profitconfidential.com