Jul 29, 2015
Financial expert and regular network contributor Jordan Goodman is just back from China where he has seen all the makings of what he considers to be a housing bubble ready to burst. Endless residential and commercial construction, giant buildings and shopping centers with no tenants - so called Ghost Cities' - and an economy that can no longer support the massive build-up.
"What we have is a recipe for disaster in China and we are seeing it now with wild Chinese stock market fluctuations affecting world markets. The scariest thing however is that unlike what we saw in the US in 2008, this collapse will be much bigger and potentially more destructive to the world economy", says Goodman.
Goodman traveled all across China by rail where he saw with his own eyes buildings going up in cities too small to support their growth. Complicating the economic problems in the world's second largest economy is that China has no property tax therefore the only revenue cities can count on is real estate construction and sales.