Despite MAS insisting that Singapore is not facing a credit bubble, it appears that there are a number of other news companies around the world that are suggesting otherwise.
(MAS insists that Forbes is wrong about credit bubble)
Last month, Washington post published the following article highlighting that Singapore was one of the 17 countries which were facing a potential housing bubble.
Yesterday, Forbes also suggested that many Singaporeans are over leveraging themselves on the super low interest rates and this is causing the housing market to inflate.
(Forbes: Why Singapore's Economy is heading for an Iceland style meltdown)
The Washington post article:
Economist Nouriel Roubini is warning that 11 countries are showing indications of potential housing bubbles – an alarming prospect for the global economy, which is still recovering from the aftereffects of burst housing bubbles in the United States and elsewhere. He identifies another six countries in which major urban areas may have housing bubbles.
Those 17 countries with possible housing bubbles are mapped above in red. The lighter-red countries have housing bubbles in major urban areas only. You'll notice that this map includes very rich countries such as Switzerland and Norway along with enormous rising economies such as India and Indonesia. Perhaps most alarming, if least surprising, Roubini joins the rising chorus of economists warning that China's housing market is dangerously over-inflated. (He identifies mainland China as well as Hong Kong.)
Here's the list of countries identified as having possible housing bubbles, from West to East: Canada, France, Switzerland, Germany, Norway, Sweden, Finland, Israel, China (mainland plus Hong Kong), Singapore, Australia and New Zealand.
Read the rest of the article here: http://www.washingtonpost.com/blogs/worldviews/wp/2013/12/03/an-alarming...