According to comments made at a State Council meeting and published by Reuters, Chinese Premier Wen Jiabao
wants to see a "reasonable pull-back" of housing prices.The government will clearly keep tightening credit to developers and restricting purchases of multiple homes for speculative purposes. The intentions are certainly admirable - everyone agrees that affordable housing is a must for social stability. However once the bubble has inflated, it often can only either keep inflating further or simply burst.