“An explosion in credit is setting the stage for the next financial crisis in Asia, according to a new research report from Capital Economics, CNBC reports.
The current Asian credit boom is much like the credit explosion in Ireland and the Baltic countries in their run up before the 2008 financial crisis, the report warns. The situation is particularly dangerous in Hong Kong, Vietnam and China.
Hong Kong, where abundant credit has helped home prices boom, now seems disturbingly like Ireland just before the 2008 financial crisis, the research warns, according to CNBC. ”
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