China’s Depressed Animal Spirits

Here’s a report from Al Jazeera’s Rob McBride in Hong Kong.   We’re trying to diversify our China media sources in response to suggestions from our readers in Asia.   The caption to the video reads,

China’s strong consumer base has kept the country stable in times of global economic uncertainty.

But alternative economic indicators may now be pointing to tougher financial times for the world’s second-biggest economy.

The country’s towering skyline, made up of plenty of new but vacant buildings, is a sure indicator for many that it is heading for trouble.

Half of all the world’s skyscrapers currently under construction are in China.

And like New York in the run-up to the Wall Street crash of 1929, or Dubai before the 2008 financial collapse, analysts point to the link between building for pride and an impending economic fall.

Recall our piece in 2010 on China’s wine bubble.

(click here if video is not observable)

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