In large and medium-sized cities, it is hard to buy one house. The real estate market in China has entered an embarrassing "ecstasy" era."Ecstasy" has been accompanied by the absurd excesses of the housing market. Tian Guoli, chairman of CCB, who attended the meeting, warned that "if the real estate market continues to be in chaos, and if the local government continues to try to borrow debts, financial risks will arise even if the financial supervision is severe." In the past two years, similar warnings have long been heard.This super real estate boom is not unique to China. Before the outbreak of the subprime mortgage crisis, there was a similar situation in the U.S. banking system. After the outbreak of the crisis, more than 10 million American families are facing foreclosure and become negative equity.The financial industry is a responsible industry. In the cycle of speculation and prosperity, the financial industry is doomed because of the lack of general sense of responsibility and self-discipline. These lessons are worth our reflection. The history of economic crisis in the past century has repeatedly warned us that real estate bubbles are the most dangerous bubbles.We should bear in mind that when the economy is at risk, we should improve the crisis response plan, take preventive measures, and establish a mechanism conducive to the stability of the economy and asset prices at the macro level, so as to maintain the overall stability. In view of the prominent and spillover risks in the real estate market, we must speed up the establishment of a new housing system and improve the market-oriented control mechanism as a breakthrough, because the administrative means of control has failed.
