Hmm. I wonder.Do you think a housing collapse will have the same effects there as it does here? I will admit I am not well versed in the details of Chinese economy. Gaps in my knowledge combined with the fact that in Chinese economy is even more intertwined with politics than US economic activity makes it very difficult for me to get a bead on how things might play out.

It seems to me that with their reserve currency surpluses and predilection for large scale Keynsian projects that they could alleviate their housing bubble at any time they chose. Or, conversely, orchestrate takovers of troubled entities and slow housing expansion if a pop seems likely, and maintain the status quo.

Also, it seems as though a far smaller percentage of their overall GDP is dependent on pure financial services than the US. This just leads me to wonder if their housing issues will play out any recognizable form, in comparison to ours.

But then again, see initial disclaimer.

Do you think it would be similar?

For who could be free when every other man's humour might domineer over him? - John Locke (2nd Treatise, sect 57)