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And crashes do happen a lot in China. Just recently there was the P2P lending crash.

• seanmcdirmid 8y ago
  Ya, and obviously the stock market. But none of these have been big enough to cause a full blown financial crisis. China hasn’t had one of those since the 90s.
  • fspeech 8y ago
    They do some bloodletting to let off some pressure from time to time. This pushes the full blown crisis further down the road. However this time they are in an obvious bind over the real estate price boom and there is no easy way out.
    • seanmcdirmid 8y ago
      The can kicking only makes the eventual crisis even worse. Real estate is one area of weakness waiting to blow but debt, especially local government and SOE, is definitely another.