Dubai shows fragility of dreams built on bubbles

• Source: Global Times
• [02:07 December 01 2009]
• Comments

With property prices at an all-time high and beyond the reach of most people, it is safe to say that market bubbles in China, too, may be on the brink of bursting.

If China's real estate sector is to be brought down to earth and not allowed to go the way of Dubai, there must be a major effort at structural adjustments to China's economy.

As decided at a meeting of the Political Bureau of the CPC Central Committee Friday, China will continue its stimulus packages next year, and take a more sustainable growth path by restructuring the economy on a more healthy and consumption-driven track.

Dubai World's corporate philosophy claimed "strong fundamentals, best ethical practices and integrity," but its dream was built on a fragile base, which lead to the crisis.

The correct conclusion to be drawn from Dubai is that only on "strong fundamentals" can China's dream of sustainable prosperity come true.