China is heading for a big crash
JAMES CHANOS
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.
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. He said that China's figures may be inflated and its assets is understated.
MARC FABER
Marc Faber did once said, he does not believe in the figures what China has churned out. It is always a mysteries. Of course, he also said that some of the US figures are not as accurate either.
MYVIEW
Isn't it a fallacy, before the financial crisis, China boom is very much depends of US consumer boom. USA consumption is near USD10 trillion. China GDP is about say USD4.5 trillion, with consumption of say USD1.5 trillion. Well, some said that China loss of export will be replaced by its domestic market consumption of 1.3 billion people. Why isn't this statement given long before the crash. Do we think USD1.5 trillion will increase to USD10 trillion in 10 years time. Well, I think not. Linear growth can only happen in a economic theory, definitely not in a real world. Can China consumption increase 7 times in 10 years?
We are not denying that China one day may take over as the biggest economy in the world, but in 10 years time, it is far fetch.
ANDY XIE
I think that inflation will end to China's real estate bubble. Fundamentally speaking, inflation is a monetary phenomenon. For example, China's money supply increase of 30%, while nominal GDP growth of 5%. In 2012, real estate bubble will eventually burst. Achievements in the economic stimulus plan is not an investment, but speculative, dangerous asset bubble is forming a new BUBBLE.
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