SHANGHAI — James S. Chanos built one of the largest fortunes on Wall Street by foreseeing the collapse of Enron and other
Now Mr. Chanos is betting against China, and is promoting his view that the China miracle has blinded investors to the risks in that economy.
Now Mr. Chanos, a wealthy hedge fund investor, is working to bust the myth of the biggest conglomerate of all: China Inc.
As most of the world bets on China to help lift the global economy out of recession, Mr. Chanos is warning that China’s hyperstimulated economy is headed for a crash, rather than the sustained boom that most economists predict. Its surging real estate sector, buoyed by a flood of speculative capital, looks like “Dubai times 1,000 — or worse,” he frets. He even suspects that Beijing is cooking its books, faking, among other things, its eye-popping growth rates of more than 8 percent.
“Bubbles are best identified by credit excesses, not valuation excesses,” he said in a recent appearance on CNBC. “And there’s no bigger credit excess than in China.” He is planning a speech later this month at the University of Oxford to drive home his point.
MORE HERE...
The Bad Job Numbers and the Secret Second Stimulus
More Here...
China counts it's economic growth in production. This means as long as they produce, they show growth. It doesn't matter if people don't want it.
ReplyDeleteA good example is the city of Ordos. Newly build for 1.7 million people, but completely empty.
I love these idiots who go ard giving speeches at the same time making huge bets so that they profit.
ReplyDeleteI remember during the time b-4 Enron collapse, this asshole was going ard TV and praising Enron, and saying how it was the model company.
All the while, he was placing billion dollar hedges against that same company, of course people didn't know this until AFTER Enron crashed, and then people saw who profited hugely from the collapse
Chian produce alot of stuff, but so little demand because their government is not allowing their citizen to benefit from great purchasing power. Alot of stuff that first world country enjoy, China can have them too if they allow their currency to be stronger
ReplyDeleteCooking books is what the Chinese learned from their teachers on Wall Street - Goldman Sachs and alike and Security Exchange Commission. So there is no surprise here.
ReplyDeleteHmm So who will make my underwear now?
ReplyDelete10:40pm : you won't need underwear in FEMA Camp, you enemy combatant.
ReplyDeleteMaybe why China encouraging its people to buy silver and gold?
ReplyDeleteWe no longer need underwear. Street cameras now scan through whatever we wear. Did I say mobile phones had been able to scan through clothing for a decade now?
ReplyDelete