The housing bubble was a global rather than US event. The bubble outlasted the US experience in several other countries such as Australia and Canada which are experiencing some weakness. However, the one I?ve worried about is in China. Keep your eye on this one.
But the math tells a different story. The housing frenzy has driven prices so high, so fast, that a crash on the scale of the real estate collapse in Japan in the 1990s is a virtual certainty. And China?s already exaggerated official growth rate could take a pounding, all the way to the zone of the unthinkable, into the low single-digits.
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