# Professor Roy Smith identifies similarities between China's credit boom and Japan's asset price bubble collapse

1 Faculty News September 28, 2016 ![Bloomberg logo](/sites/default/files/styles/246w/public/assets/images/bloomberg192x144.jpg?itok=yV529lwz)>

Excerpt from [Bloomberg](http://www.bloomberg.com/news/articles/2016-09-28/china-s-bubble-trouble-risks-missing-lessons-from-japan-s-crash) -- "'I am big on the parallels,' said [Roy Smith](http://www.stern.nyu.edu/faculty/bio/roy-smith), the New York University academic who as a banker in 1990 anticipated Japan’s decline. Japan’s market crash 'led to a financial crisis that they never recovered from. China probably faces a debt-led financial crisis too, which could have significant consequences,' he said."

[Read more](http://www.bloomberg.com/news/articles/2016-09-28/china-s-bubble-trouble-risks-missing-lessons-from-japan-s-crash)