MUMBAI, India -- Barclays Capital says a skyscraper building boom in China and India may be a sign of an impending economic correction.
Barclays has mapped an "unhealthy correlation" between construction of the world's tallest buildings and impending financial crises over the last 140 years, including the Great Depression and the Asian financial crisis.
Today, China is home to over half the 124 skyscrapers now under construction worldwide.
India, which has just two skyscrapers, is building 14, including the world's second tallest tower, in the financial capital Mumbai.
Barclays says such clusters of building activity usually coincide with periods of easy credit, excessive optimism and rising land prices, which often occur before market corrections.
The Associated Press