MoneyWeek issue 396 cover

China's heading for a fall

8 August 2008 / Issue 396

Is China's miracle economy heading for a fall?... PLUS:

  • How long will India's bear market last?
  • The one number to check before you buy a stock
  • Simon Nixon on Darling's futile plans for reform

Excerpt

There is some good news…

I’m afraid we have little but misery for you in this week’s magazine. Stock­markets still aren’t safe. Commodity prices have seen their largest fall in 28 years. The oil price has crashed below $120 a barrel making – as we have long suspected – $90 a lot closer than $200. China is clearly in some trouble. And, of course, the housing market remains a disaster area. Prices are anywhere from 8%-15% off their peak already (depending on who you ask), weak borrowers coming to the end of cut-price deals are finding themselves at the mercy of their lenders’ Standard Variable Rate (hence the 41% rise in repossessions) and volumes have disappeared. In June, says Henry Pryor of Primemove.com, there were no sales at all in 1,000 of Britain’s 2,851 post codes.

Read the full editor’s letter here: There is some good news…