China

Right now I am spending some time on a business trip in Shanghai. And while everyone thinks about the Eurozone debt crisis, in China things aren’t going well either. In the center there are lots of tall living houses, in which two bedroom flats cost ca. $700 k. One family houses nearby cost $4 mln each... Those prices are close to insane compared to what you can get for this money in other parts of the world.. But still in Shanghai there are thousands of construction sites... PMI fallen recently below 50, and GDP is not growing as fast as it used to grow. Also when I look at for instance IT services rates, those are becoming closer to those in Central European rates, so growing at 7% pace will not be as easy as it used to be in the past… Government is focusing on innovations and services, however transformation from an industrial economy will take many years.

Not only in Europe things aren't looking very promising…