China Hard Landing Bets Rise As It Now Costs More To Bet On Renminbi Strength Than Weakness

Tyler Durden's picture

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GeneMarchbanks's picture

China housing crash= Aussie housing and Canadian housing crash, no?

qussl3's picture

Bizarrely a Chinese crash may see more not less money move to the traditional haunts.

Oz is fucked regardless, its housing bubble is pervasive, the bubble has reached even border bush towns.

Canada, not so much Vancouver is crazy town but the other capitals are nowhere near as nutty.

Financial Newbie's picture

Toronto still ain't pretty.

And I can't help but wonder if the problem that will come with economic slowdown will be *massive* declines in Canadian workers' earnings, thus blowing the bottom out on housing affordabillity...

hugovanderbubble's picture

Exactly Gene

Short Asian Reits

Specially Hong Kong, Japan and Australian ones

 

* Also SRS US EQUITY long

*Short EWH till 16.00$

GeneMarchbanks's picture

hugo,

Should this not then lead to a banking sector crises in the big 4 Australian banks? Maybe that's a huge short. Certainly I was looking for this last summer-never happened though.

 

SMG's picture

Excessive debt/fiat fueled growth, then pull the plug.  The Oligarchy/Bankster/Illuminati have been using this as one of their strategies to increase their power and achieve their goals for the last couple hundred years.  Japan was a big collapse as was the us in 29, but this next one will be the largest in human history.   China's pride is great right now and the collapse will be so bad there, that they will see war as their only way out.  

Which is great from an oligarch's perspective.  They gain power and wealth from the war business and kill off possibly billions of useless eaters. 

I hope somebody can stop it this time.  Maybe if the truth gets out before it's too late. 

trav7777's picture

headline doesn't match article?

besnook's picture

a china crash will be more like a change in delta from 10% growth to 4-5% growth. good for china as it catches up with itself. bad for the rest of the world.

longshortflat's picture

ERROR ALERT:

 

Your headline "

"Renminbi Strength Than Weakness" is backwards from story content

 

KickIce's picture

The landing will be even harder if there are food shortages due to the droughts.

S-hai High's picture

"With inflation above five percent, this decline means housing has joined deposit rates in negative territory in real terms, reducing investor incentives to put money into real estate"

But, there are no credible alternatives – the bank account deposit rate is even worse and stock market has not performed this year... so, its the best option still.

"A decline in home prices may cause significant wealth destruction in China"

Since an enormous number of people in china own their home outright, there is no requirement to meet mortgage re-payments. I therefore fail to see where significant selling pressure would come from.

To illustrate in a different way – (and perhaps a point to debate, since I've not thought it through fully) - if every American owned their own homes 100%... and had no credit card debt... or personal loans... would there have been a collapse in house prices?