Jim Chanos, Kynikos Associates, shares his perspective on the markets; institutional shorting; and why he believes China’s economic troubles are getting worse.

China Credit Bubble Trouble: Chanos

Wednesday, 24 Apr 2013

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Chanos Reveals the ‘Art’ of Short-Selling

Category: Credit, Economy, Video

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

7 Responses to “Chanos: China Is Only Getting Worse”

  1. Willy2 says:

    I am surprised that the Ponzi scheme called China has been able to survive so long and continues to survive (for the time being).

    DO NOT believe for one minute that the US won’t be impacted. I expect US interest rates to rise as a result of China imploding.

  2. Willy2 says:

    Time to go short commodities ?

  3. george lomost says:

    Reminds me of the credit bubble that preceded the hyperinflation in former Yugoslavia in the 1980s. I exchanged $100 at the airport and got a wad of bills (dinars) so thick they couldn’t fit into my pants pocket. Speaking of inflation:

    http://www.telegraph.co.uk/finance/economics/10019443/I-want-to-leave-Interview-with-Argentina-Economy-Minister-Hernan-Lorenzino-goes-viral.html

    “Official statistics show month after month the inflation and this is the only inflation possible,” the minister responded in Spanish.

    Cheers

  4. BennyProfane says:

    The smart Chinese with money and connections know. They have been and still are buying up real estate all around the world to protect their money. I read recently that the condo market across the Hudson from Manhattan is fueled by 60% foreign buyers, and the Chinese and Russians make up a large part of that market. Soon, many of the best neighborhoods in America will be empty, but, well maintained, just like the empty cities of China.

  5. Livermore Shimervore says:

    wait a minute… how much cash is China sitting on? How much of the world’s manufacturing demand to they get first crack at? Seems to me that China is what we used to be. Over-leveraged, in love with buy now pay later but on a long term trajectory of growth that is almost ordained by the Economic Gods. Also, China doesn’t own ALL of debt, sure its the biggest part but not the whole. If for the sake of argument the whole Chinese economy including all of its productive infrastructure went down for the count, how exactly would they raise our rates on the very customer they rely on to buy their products?
    Raising rates on your Sears charge card kinda makes it hard for Johnsons to buy a Chinese made fridge.
    If high rates hurt demand for all thing made in China how exactly does that lift them out of their self-inflicted credit trap? Strategically the more credit China issues, the more they’ll be depending on U.S. consumers to dig them out. Either we all go down or we work something out that serves both sides. It’s a sort of new form of interdependence. Or state another way, the more China does what Chanos doesn’t want them to do (prudence), the less they’ll need us when the laws of financial physiscs come knocking.

  6. Cable news pundits have been telling us China is in the midst of a hard-landing for over two years. Meanwhile, TRI gauges April was the 13 consecutive month of rising real GDP. China itself hasn’t reported a quarter worse than 6.4% since its 2008Q4 2.2% pause.

    China GDP vs TRI chart: http://trendlines.ca/free/economics/RecessionIndicatorChina/China-TRI.htm