Contrarian Investor Sees Economic Crash in China

What do you think of this?

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James S. Chanos built one of the largest fortunes on Wall Street by foreseeing the collapse of Enron and other highflying companies whose stories were too good to be true.

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

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http://finance.yahoo.com/retirement/...etire-planning

I think that Pres. B.O. better look for a way to convince the millions of deadbeats looking for "Free money, Obama money", because that gravy train is about to come crashing off the tracks.

From the article:

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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.

....his detractors say that he knows little or nothing about China or its economy and that his bearish calls should be ignored.

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Maybe his detractors ought to read this and watch the accompanying video report:

Ordos - China's Empty City

There is an existing city called Ordos, 30 km away from the new city. The new city was built from scratch just so the people from the existing city could move...

Hmmm, who to believe, Mr. Chanos or his detractors?

"Who to believe?" Chanos.

Government officials lying to the people - glad that doesn't happen here. :rolleyes:

Don't worry, Americans will keep boosting the Chinese economy.

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Originally Posted by East Detroit

Don't worry, Americans will keep boosting the Chinese economy.

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Actually a lot of the smaller Asian countries - e.g. Thailand, Vietnam, Malaysia - have been actively undercutting the larger Asian nation economies now. Also, Chican's wealth distribution is pretty concentrated - it isn't getting spread around enough to lift the entire country into the consumer culture.