Topic: Economy, what's left of
http://www.nytimes.com/2010/01/08/business/global/08chanos.html?scp=1&sq=contrarian%20investor&st=cse
Contrarian Investor Sees Economic Crash in China
" SHANGHAI — 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.
“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. "
Recall what I wrote about CREDIT?
The problem with credit is not credit, it is business expansion far beyond the SBA's recommended "15% per year" maximum level into the stratosphere of ultra greedy, ultra rich corporations - and that expansion fueled ONLY by credit. When the lid blows off, there's nothing left of the lid - or what the lid was mounted to the kettle with.
It's easy to tell whether the news is real or fabricated. This man is predicting a China collapse and backs up that position with evidence. Read the story at NYT and look at the nay-sayers who have nothing to base their response on except ad-hominem.
