How different it might have been

News this morning included news that China is cracking down on housing loans, tightening up (i.e. raising downpayments), trying to rein in speculators, and generally trying to limit/prevent its housing bubble.  Chinese stocks were off by about 5.0%.  I say the medicine is going to be worse than the cure.  Our economy might still be on two feet instead of having had one amputated had the authorities here not tried to perpetuate our housing bubble, but instead tried to limit its damage.  In fact they hid a blind eye, saying things like, “housing risks are contained.”

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