Here in Beijing it's been interesting to watch the effects of stimulus on the housing market. The government is promoting growth by giving lots of cash to large

Here in Beijing it's been interesting to watch the effects of stimulus on the housing market. The government is promoting growth by giving lots of cash to larger organizations and entities, which in turn give them to a couple of people who quickly buy real estate. The result is that prices are rising and falling in large amounts quickly depending on what the government is doing. (On a side note, most of the Party members I've known have been involved in real estate, so I don't think it's accidental that there are systemic pressures to support the real estate market.) That said, home ownership is still out of the reach of most of the common people. I think the article is about dead wrong. China has a problem with its banking sector, And the stock markets are ridiculous since corporate profit is tied to real estate prices. But China still does not have a problem. The four big banks will be bailed out of their losses by the center (the last giveaway was 54 billion) and when you think of it this way, China isn't leveraging debt so much as spending credit to keep itself afloat. The ignorance at the WSJ is hilarious. Who is keeping them in business?