China Increases Interest Rates

China raised their interest rates in mid-October.  On a world economic scale this is important to pay attention too.  China can be considered to be in the same real estate bubble the U.S. was in back in 2007.  With a hike in rates, real estate investors and developers will have a harder time selling their properties which could burst the bubble.  China also has a serious inflation problem which could result into a financial crisis next year.   If China’s real estate market pops coupled with inflationary problems it will affect the whole world and this is not good news for the world economy.