I came across this article on my nightly news-check. Seems that a collapse is already under way on the other side of the world. Why should we be concerned? China has had a pretty strong economy over the past few years… a sign of things to come?
Once one of the hottest markets in the world, sales of homes have virtually halted in some areas of Shanghai, prompting developers to slash prices and real estate brokerages to close thousands of offices.
For the first time, homeowners here are learning what it means to have an upside-down mortgage — when the value of a home falls below the amount of debt on the property. Recent home buyers are suing to get their money back. Banks are fretting about a wave of default loans.
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