If a housing bubble existing in the USA collapsed international markets in 2008, would a housing bubble occurring in Asia, Australia, Europe and New Zealand collapse international markets in the near future?

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by Macropod

Why do I ask?

When I visited China last month, I learned that an apartment in Beijing and Shanghai costs $10,000 USD per sq. ft. Yeah, whoah! Not only this, but the inflation rate is so high that investing in real estate wouldn’t have paid off. Would be nice to have someone validate this.

When in Qingdao, I witnessed a decades worth of infrastructure and I can’t put this observation into words…. 11km tunnel, 15 mile bridge and modern buildings 25 times the size of Hartford constructed within 10 years to accommodate a population that significantly overpowers US residents.

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I have an economics professor staying with my wife and I via our AirBnB this week. Naturally inclined to learn more about his work, I read 2 of his articles:

1) Article on housing prices from 2015 (Take a look at the figure on Page 17): www.ntu.edu.sg/home/qfeng/FengWu_20150206.pdf

2) Article on China’s rapid growth in infrastructure from 2018: www.ntu.edu.sg/home/qfeng/FengWu20180423paper.pdf

If a housing bubble exists in asian markets and the system collapses…will this will have greater impact on international trade (especially on the US market) at a time when interest rates are rising and trade wars are developing.

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My wife, who is Kiwi, has seen her family home increase 10x in the last decade.

Housing prices are not increasing significantly in the US and company earnings are still positive, but something tells me that the threat lies elsewhere.

I’d love some feedback and comments if this interests anyone reading.


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