China's Debt Addiction: "Plenty of tinder, lots of fuel, all it needs is a spark" - Financial Times

Many believe that when China's bubble bursts, Vancouver's housing bubble will well and truly implode. 

Until five years ago, China’s economy relied remarkably little on debt. But China lost its debt inhibition in late 2008 when the global financial crisis erupted. With growth slowing sharply and 20 million people losing their jobs overnight, the government unleashed a giant stimulus that was powered almost entirely by bank loans. The debt genie was out of the bottle – and it has been extremely difficult since then for China to stuff it back in. 

In this video from the Financial Times, Simon Rabinovitch reports from Guiyang.

(hat tip 'Best Place on Meth')

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