China will be overheating, but sometimes the government seem to be not quite sure if they want a bigger fire or a smaller.

It might feel very good for people who have home in a real estate bubble. But the bursting of it is very lethal, as they almost invariably caused recession and worse still, banking crisis. And when a banking crisis does occur, it is hard for the economy to regain full strength. Why? Why the self-correcting mechanism of market economy fails spectacularly in real estate market?

The simple answer to why the trade deficit is so high in the United States is that both the private and public sectors are spending too much and saving too little.