Showing posts with label chanos. Show all posts
Showing posts with label chanos. Show all posts

Monday 18 January 2010

Jim Chanos: China Is Headed For A Huge Crash

Nov. 11, 2009,

 
The China bears could be dismissed as a bunch of cranks and grumps except for one member of the group: hedge fund investor Jim Chanos. Read the whole thing >

 
Chanos is reportedly attempting to short the entire Chinese economy. What's fueling the short case against China?

 
  • The $4.3 trillion Chinese economy is under-performing despite a $900 billion stimulus program.
  • China seems to be cooking its books. For instance, it reports that car sales are surging while gasoline consumption is flat. Is that realistic? Or are state run Chinese companies just stock-piling cars?
  • China may have too much capacity. The central planners built out productive capacity for a booming economy but China is stalling. In nearly every sector of the economy, China is in danger of producing huge quantities of goods with no buyers.
  • China's economic and political posturing signals that its leaders have no idea what is in store for them. The result may be a surprising economic collapse, akin to what happened when the housing bubble popped in the US.

 
http://www.businessinsider.com/jim-chanos-china-is-headed-for-a-huge-crash-2009-11