In a new report, Credit Suisse analyst Andrew Garthwaite warns global investments of the trouble that Credit Suisse sees brewing in China. According to the report, the world could be witnessing the simultaneous bursting of three of the largest financial bubbles in history, based on the most recent data out of China.

The Triple Bubble

According to the report, China has formed the third-largest credit bubble, the largest investment bubble and the second-largest real estate bubble of all time. China’s recent high deflation rates, falling housing prices, forex outflows, slumping deposit growth and weak job offer-to-application ratio are all at or near historical extremes and serve as signs that the Chinese economy could be in real trouble.

Despite some signs of near-term stabilization, Garthwaite projects that a 15 percent drop in Chinese housing prices or a deposit growth rate decline to zero would produce a China GDP growth rate below 3.0 percent.

European Autos Will Suffer

Credit Suisse sees…

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