Oh, and there is only one thing worse than inflation... Deflation. 呵呵

i also have the friends who worked in the bank.he told me that there are many risk Mortgages in bank systom. i also got the news that French bank - Societe Generale's scandal.it's terrible.something happen in the same risk. i admit we ahve many neglect and problems.but we hope for the better future.the temporary hardship will power us further.right?

to be honest,i have no idea about inflation.cause i foucus on the culture and people.i have no idea about money or economic. but for my potential career,i pay attention to finance and government's policy.i also know a little. in 2008.CPI index is so popular for chinese people.indeed,our CPI rise to 6.8 maybe in mid -term.if this situation happened in outside,the people will be on strike. but for most of chinese people,like me,we should strive for or make a hard life. so i think i'm strong to overcome any if the inflation is in control by our government'spolicy and the marketing effect. now it's February,the CPI is stable.i'm assured.

I´m most concerned about normal Chinese households and relatively poor people. Just look at the building projects. Many of them were built speculating on higher prices. (The price of housing was growing by 10 percent.) Obviously this means that valuable space is being wasted and that normal households have to pay more for less. Secondly, I've read some articles about the way Chinese banks handle mortgages. Basically, the amount of money available (through the current account surplus) enables them to finance eachothers lending. (Normally the central bank has control over this.) Anyway, Chinese people have been getting second mortgages as well and they too have been speculating. So, I guess a lot of people are going to get into trouble when the housing prices stop rising. Well, and we all know that many people in the USA are in trouble because of their extra mortgages.