A new home is being built next to a home with a for sale sign on a street in Vienna, on the morning the National Association of Realtors issues its Pending Home Sales for February report, in Virginia March 27, 2014.    REUTERS/Larry Downing Thomson ReutersNew home is being built next to a home with a for sale sign on a street in Vienna, on the morning the National Association of Realtors issues its Pending Home Sales for February report, in Virginia

 

First, I think the government is going to crack down even more seriously about the money flowing out of their country.

Outflows recently totaled $580 billion in 12 months. How can you continue to let your most affluent take their wealth out of the country under the guise of their kids’ education?

But more importantly, I think another shock is coming to China’s stock bubble burst. And that will create more uncertainty among the affluent. They can’t be feeling too secure about their financial assets, and some are already getting less comfortable with speculation.

My forecast: Look for another stock crash in China starting by late January. And then an acceleration of the real estate crash in China that has already begun.

This happened with the Japanese in the early 1990s…

When such a crash and implosion of wealth happens where it really matters – real estate – it will cause global speculation to come to a halt, and fast.

And that means curtains for many of the bubbliest cities around the world… even Plano, TX.

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