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Originally Posted by mg1942
Contrarian Investor Sees Economic Crash in China
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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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You know, I do see where he's coming from with this. The economy in China has been growing quite fast in the last 10-ish years, but lately, it's been picking up to the point where its growth is at lightspeed. Imo, China's been growing too fast and spreading its resources out so far that the risk it brings with doing that is becoming larger. It's bound to run out of luck real quick if it keeps up. Tbh, I see more potential in India rather than China. India's also been growing but much more steadily. I don't see it getting us out of a recession as soon as China was said to, but at any rate, it's also showing quite a lot of promise. A great many people are overlooking this in light of China's dramatic growth and expansion.