Broad Oak: your emotional support animal

Tuesday, December 20, 2011

China is in the same debt boat as the rest of us

Robert Wenzel reports a Roubini tweet that the real government debt-to-GDP ratio in China is 80%.

INVESTMENT DISCLOSURE: None. Still in cash (and index-linked National Savings Certificates), and missing all those day-trading opportunities.

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5 comments:

Paddington said...

A column by Paul Krugman today points out that China is also headed for a real-estate bubble.

The Arthurian said...

A high ratio of government debt to GDP is not a problem if the ratio of private debt to GDP is low.

Of course, a real-estate bubble would indicate high levels of private debt.

Sackerson said...

Agreed, A.
Merry Christmas!

Sackerson said...

P: 64 million unoccupied residential units, for a start, I understand, P.

Paddington said...

And the mortgages are even being funneled through places like pawn shops.