House of horrors

China’s real estate market is in a scary place. Prices have fallen and will continue to do so. Here’s how China got into this mess and what will happen next.

While the world’s economy has zigged, China’s has zagged. Most countries raised interest rates to battle high inflation. A move that many pundits figured would drag down the inflation rate and house prices but didn’t. Yet, China went in the opposite direction. They cut interest rates to battle deflation and stop house prices from falling. But it hasn’t …