Housing Bubbles in Metropolises in China Introduction The boom of house market has emerged accompanying with the soaring development of Chinese economy over the last two decades. Although the prosperity of real estate sector makes contributions to the growth of national fiscal revenue and Gross Domestic Product‚ it also raises a serious problem --- housing bubbles‚ defined as the housing prices deviate too much from its fundamental value (Flood and Hodrick‚ 1900)‚ especially in metropolitan
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How could the Chinese housing bubble affect the Australian economy negatively? The Chinese economy is one of the fastest growing economies in history and they have excelled by throwing tons of resources into modernizing their economy. Real estate is a foundation of China’s phenomenal growth record in the past two decades with property construction alone accounting for 13% of GDP in 2010. The health of the economy is crucial to China’s construction‚ steel and cement sectors. Chinese growth has
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Chris Moon April 26‚ 2013 FE442 Assignment #2 –The Next Asset Bubble Burst I believe that the next asset bubble burst will be the higher education industry pertaining to student loans. As college tuition continues to increase at an exponentially faster rate than inflation‚ many potential students are left with two possible options‚ to take out student loans or not go to college at all. Even though student loans are supposed to be worth it because of the high paying jobs that students will get
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Housing price is a sensitive issue for everyone. Generally‚ the more expensive houses are‚ the more difficult it is for people to live. In fact‚ Toronto is one of the cities which has the most expensive housing price in the world. According to Royal Lepage’s website‚ an average Toronto house price was 624‚923$ in 2015‚ the second highest price among all Canadian cities. Moreover‚ an article by Sherman (2016) states that Toronto’s house price was increased by 8 percent in 2015; this figure was ranked
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The Housing Bubble: America’s Downfall Linda Smith Professor Bolden Abstract A housing bubble is a situation where there is an extremely high demand for housing‚ but this demand is created through artificial ways‚ like lowering interest rates. The interest rates are lowered to create a false sense of security for consumers and can lead to economic boom. Also‚ as we are learning the hard way in the United States‚ it can end in economic hardships. Most Americans would tend to agree that
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U.S. Housing Market Bubble During the early 2000s‚ the United States entered a period of economic madness including the economic housing bubble. At the same time‚ the Federal Reserve had executed expansionary monetary policy by lowering interest rates in response to the recessionary period. But‚ what role‚ if any‚ did the setting of monetary policy play in the ensuing housing market developments? This report will analyze Dokko et al.’s (2009) report “Monetary Policy and the Housing Bubble” and
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CANADIAN BUBBLE‚ EH? How real is Canada’s housing bubble anyway? More real than any other countries. That is due to the following facts that I will present below‚ but first it is better to start with a little history. In the year of 2008‚ as stated on Statistics Canada‚ the recovery of the recession was much quicker than in other recession period such as in 1981-1982 and 1990-1992. However‚ was it a real recovery or an illusion? In 2011‚ Globe and Mail published an article on why Canada’s recession
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http://en.wikipedia.org/wiki/Subprime_mortgage_crisis http://zh.wikipedia.org/zh-hk/%E6%AC%A1%E8%B2%B8%E5%8D%B1%E6%A9%9F Subprime mortgage crisis The subprime mortgage crisis is an ongoing real estate crisis and financial crisis triggered by a dramatic rise in mortgage delinquencies and foreclosures in the United States‚ with major adverse consequences for banks and financial markets around the globe. The crisis‚ which has its roots in the closing years of the 20th
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The purport of this work is to reveal the influence of eventual failure of the Chinese market on the world’s economy from a globalist’s point of view. China‚ as a growing world power‚ has a significant impact on the global economy. An eventual downturn of its market will lead to dramatic consequences for the economy on national and world-wide level. As the country with the highest IT goods export rate‚ its failure will lead the global community to a larger poverty gap‚ less investment‚ less technology:
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BUBBLES …As the cool air whiff to my face‚ I can’t resist closing my eyes and pretending to fall into deep asleep‚ to fade all the pains and emptiness brought about my consciousness. But the sounds of the bird chirping and the touch of the cold bench where I am sitted made me realize that it is still a wee time since I got up from my bed. The moment I open my eyes‚ the intense feeling of loneliness filled my whole being as the tiny bubbles blown out in the air. Wondering where it came from
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