this post was submitted on 11 Aug 2023
476 points (90.3% liked)

World News

32376 readers
550 users here now

News from around the world!

Rules:

founded 5 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
[โ€“] [email protected] 10 points 1 year ago (1 children)

You just described the US, UK, and much of the western world entirely. The global economy is just a bunch of "IOU"s

[โ€“] [email protected] 18 points 1 year ago

China is a bit different in that regard, though.

Since apartments are pretty much the only investment for private savings, there's a huge percentage of the GDP tied to construction. This bubble is not quite bursting, but rapidly deflating, leaving many regular people practically without savings.

Other countries have inflated real estate markets as well, but their markets simply are not that large in comparison (percentage of GDP).