What We're Hearing

Is China's housing bubble (that is, if it really is a bubble) about to pop? Here's some new intel from Barclays Capital about the situation: "In our view, a combination of structural forces and distortions make China prone to a housing bubble, if policy is not carefully managed. Factors that have boosted housing demand – including demographics, urbanization, income disparity and high savings – are likely to reverse or decline in intensity over the next 10 years. The government's recent measures to cool the housing market focus on limiting investment demand and increasing the supply of public and low-cost housing. In our view, this represents a regime shift in housing policy, and more measures – related to taxes, regulations and the public housing framework – will likely be rolled out." Meanwhile, I wonder if Goldman Sachs has found a way to short China's housing market?...