China: one great big subprime mortgage?

A metaphorical subprime mortgage, of course.

From The Economist:

India has a big advantage over China in coping with an economic slowdown. It has all-too extensive experience in it; and it has a political system that can cope with disgruntlement without suffering existential doubts. India pays an economic price for its democracy. Decision-making is cumbersome. And as in China, unrest and even insurgency are widespread. But the political system has a resilience and flexibility that China’s own leaders, it seems, believe they lack. They are worrying about how to cope with protests. India’s have their eyes on a looming election.

China has been outperforming India during the boom years, but perhaps India will weather this recession with less pain.

Democracy: muddling through good times and bad, since 500 BC.

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One response to “China: one great big subprime mortgage?

  1. Pingback: » China: one great big subprime mortgage? « Empire of Dirt » Subprime Mortgage Refinance

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