Sure, there's potential for a real estate bubble to burst in Chna. We'd feel the fallout here, most definitely. But the Chinese government is in a position to take measures to prevent the worst from happening. I believe they would act rather than simply sit idle and allow a collapse.

That said, it's best to be aware of the worst possible scenarios and know whether you're in a position to ride it out. That's true of any investment.

I don't expect your dire forecast to become reality, but I could withstand it.

I just Googled "China economy" and saw these recent headlines under News:

BHP confident on strength of Chinese economy

http://www.smh.com.au/business/bhp-confident-on-strength-of-chinese-economy-20140819-105yrf.html

Chinese economy facing some risks

http://news.smh.com.au/breaking-news-business/chinese-economy-facing-some-risks-20140820-3dzo4.html

Specialist warns of even tougher shocks from China's economic slowdown

http://www.abc.net.au/news/2014-08-18/specialist-warns-of-even-tougher-shocks-from/5678464

How China’s Trying to Boost Its Economy: ‘Qualitative Easing’

http://blogs.wsj.com/chinarealtime/2014/08/11/how-chinas-trying-to-boost-its-economy-qualitative-easing/

Why China's Economy Can't Pop Its Real Estate Bubble

http://www.ibtimes.com/why-chinas-economy-cant-pop-its-real-estate-bubble-1645472

These are among the headlines that appeared from within the past month. Which one are you going to believe? Nobody knows for sure what the future holds.