Borrowing Beijing
04/02/2014 | | Chinese economic growth, econ70, Economic forecasting, economist on radio, economist on TV, eisenberg and economics, Eisenberg and housing economics, Eisenberg and public speaking, Elliot eisenberg, funniest economist, funny housing economist, Graphsandlaughs, graphsandlaughs and eisenberg, housing sales, MLS, mortgage banking, Multiple listing service, politics and economics, Public speaking economist
With growth in China slowing substantially and Chinese leaders still slavishly forecasting 7.5% GDP growth, expect Beijing to step in and support the economy with aggressive fiscal stimulus. The problem, increased reliance on debt and infrastructure spending along with the easing of lending standards prevents the economy from becoming consumer driven. Worse, the economic boost from each successive round of debt spending falls. A better solution, lose the GDP target.