China looks set to crash

[redrumloa]

http://www.equitymaster.com/tm/tm.asp?d ... t-to-crash

Noted investor Marc Faber, author of the Gloom, Boom & Doom report, is wary of investing in China. He believes that China's economy will slow and possibly crash within a year. What will fuel it are the declines in stockmarkets and commodity prices which would highlight that the nation's property bubble is set to burst. Readers would do well to recall that the Chinese economy was impacted by the global financial crisis due to slowdown in exports.

A nation which relies heavily on exports to bolster its GDP, recession in the developed world meant that demand and consumption waned. Suddenly, there was not much of a market for Chinese goods. This slowed down Chinese GDP growth although it was way above what the rich world was recording at the time.