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China’s Housing Crash Will be Far Worse Than You Think

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Internet is filled with videos where protestors  are taking into the streets of China demanding  

their money that the banks have frozen. A bank  run is dangerous. When people realize that their  

money isn't safe in the bank, everyone will  rush to withdraw all the money they have been  

keeping in the bank, thus leading other  stable banks to run out of money as well.  

But that’s just one side of the story. The scale  of the crisis that China is about to experience  

is much bigger than we imagine. China is about to have its own version of  

the 2008 housing crash where major corporations  such as Lehman brothers failed, thousands lost  

their houses, and the global economy tanked into a  recession. The only difference is, china’s housing  

crisis seems like it will get much worse, a  housing crash on steroids if you would like. 

This is China’s GDP since 1960. Until the  1990s, its economy was barely growing,  

but at the beginning of the late 1990s,  China’s economy exploded. It grew from  

half a trillion dollars in 1994 to almost  15 trillion dollars by 2021 (14.72T). That’s  

probably the fastest economic growth in modern  human history. It sounds almost like a miracle. 

But not everything is sunshine and rainbows.  Behind fancy numbers and shiny buildings,  

there is a dark side of it. One of the main  sectors that was driving China’s GDP is the real  

estate market. It accounts for 13 percent of the  country’s GDP and makes a third of it’s economic  

output. That includes houses, rental and brokering  services; industries producing white goods that  

go into apartments; and construction materials. The only problem is that china has built way too  

many homes than it needs to the point where it  has turned the sector into a bubble. China has  

at least 65 million empty homes, that’s as much  as the entire population of France, and half the  

population of the largest country in the world,  Russia. It even created replicas of the Eiffel  


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