www.NewWaveSlave.com – Jim Chanos, the famous investor who always bets on the short side of the market, gives his reasons (yet again) on why his fund is short China. Chanos gives extremely compelling insight on the Chinese economy which is being propped up by their Government’s central planning bureau. Jim Chanos has great insight and I wouldn’t be against him. (I cut out the first few minutes which was boring chit-chat between he and the hosts)
Tags: Chanos, China, NewWaveSlave.com
March 21st, 2012 at 10:09 am
People have been predicting China is gonna collapse for how long now? LOL it makes me laugh that all these pundits think they are some sort of visionaries or something.
March 21st, 2012 at 11:01 am
The coming collapse of America (Not China)
March 21st, 2012 at 11:21 am
@chrisblueworld M petis his communist loyalty i dnt belive him ahahahaha kiding
March 21st, 2012 at 11:39 am
@chrisblueworld if chinese economy crash,,, can U.S economy stable? U.S. government being too dependent on China,, I doubt that the USA will crash to,,Yum now operates 3,200 KFCs and 500 Piza Huts in 650 Chinese cities stretching from the tropical southern island of Hainan to the North Korean border and the dsert oases of the ancient Silk Road. expctd to make 36 prcent of an estimated $2 billion operating profit evry amrican cmpany GE, Boeing, microsoft have proftble chinese economy growth
March 21st, 2012 at 12:35 pm
@sartaana
Jim Rogers track record is not that impressive and Goldman Sachs? Really? The bank almost went bankrupt during the financial crisis because of its predictions. You don’t have to be in China to understand the economy. Anyway, read Michael Pettis blog, he knows about the Chinese economy. He teaches at Beijing university and lives there. China’s growth will slow to 3 to 5% in the next 2, 3 years.
March 21st, 2012 at 1:30 pm
@chrisblueworld I belive jim roger has more experience than any other about chinese economy including goldman sachs who predict that China’s economy will triple in size over the next decade, Chanos never visiting mainland china, Chanos needs to visit these ‘ghost towns’ and other foreshadows of doom before he can be confident that China will actually crash, if Chanos actually went to China, he might be pleasantly surprised at the state of the economy and the housing market.
March 21st, 2012 at 1:40 pm
@sartaana
Well, Jim Rogers is wrong about that. There is a bubble in real estate, infrastructure and massive overcapacities in production. In China, with about 60% of economy depending on investments, mainly in real estate, the Chinese economy is moslty about real estate other than the US or UK. Consumption contribute only 36% to the Chinese economy.
March 21st, 2012 at 2:17 pm
@chrisblueworld its good to know exactly the time will hapen, Jim rogers said the only asset bubble I see potentially in China is in urban coastal real estate, but real estate is not nearly the entire Chinese economy as it was in America and the U.K. Sure, they will have setbacks
March 21st, 2012 at 3:07 pm
@sartaana
Chanos never really said when it will happen, only that it will happen. And he is right about that. The Soviet Union also had high growth rates for many years before the crash. Communist goverment economy is just inefficient, they always end up with credit-driven investment growth which in China already accounts for more than 50% of the economy.
March 21st, 2012 at 3:07 pm
@chrisblueworld Let’s See Wht Hapen next 2 or 3 yrs frm now, remember jim chanos analysis buble or market crash begin 2009 whn he say Chinese economic mircle is nothng but a paper dragon. In fact, they argue that the Chinese have dangerously overheated their economy, buildng malls, luxury stores and infrastructure for which there is almost no demand, and that the entire system is teetering toward collapse, and didnt hapen, communist gov’t Economy Management very dfrent its western counterparts
March 21st, 2012 at 3:46 pm
@sartaana
This is nonsense, many people used the same argument in the 1980s for Japan. Different economic system, goverment…yet Japan crashed in the 1990s. The same is happening in China, a crash followed by a period of slow growth
March 21st, 2012 at 4:28 pm
@junglesoup he ddnot Enron worker but his american he live U.S he can explaine whts going but china is defrent country and if you know whts going on Aus or Aud exchnge rate Australia is western style economy you can explaine becouse Australian economy much the same as American, but china they have defrent type economy policy and defrent type of gov’t , thts why you cnt explain unles you live in china to understand chinese economic management
March 21st, 2012 at 5:10 pm
Eventually the business cycle always plays out. Now it’s no longer just real estate prices but goods across the board. In other words, China has now entered the late stage of its artificial boom induced by excessive money printing by its central bank.
Similarly as the US in 2006, as the central bank raise interest rates and reserve requirement in order to contain prices, the central bank will end up busting the massive property bubble, triggering a massive collapse of the financial system.
March 21st, 2012 at 5:48 pm
Chanos reckons he’s done well so far on his China-bear positions.
I call balls!!
How can anyone who has shorted the big Australian resource companies have done well? Especially when their rise in value has been spectacular from an $US persepective.
I’d be more impressed if he said “we’ve done crap so far, but hoping that our predictions will come true”.
March 21st, 2012 at 6:31 pm
@sartaana
He didnt work at Enron when he shorted it from 90 USD to zero….he also didn’t work at the subprime mortgage lenders, and he didn’t work at US banks. I don’t live in Australia, yet I m short the AUD.
March 21st, 2012 at 7:20 pm
@cnxtrans where he get China’s GDP is 70% percent construction? if somebody analysis something must live place he or she analysis therefore nobody belive you what you analysis,, jim chanos his not familiar whats going on china thats the fact
March 21st, 2012 at 7:31 pm
@sartaana If his data is correct (70% GDP in construction, an office cubicle planned for every Chinese person..), then the correction will happen, no doubt about it.
March 21st, 2012 at 8:01 pm
@lb11rb But the capital used to short sell the share is not available anymore, so the only way they could invest in T-bills would be to leverage. Maybe I don’t understand clearly.
March 21st, 2012 at 8:03 pm
this guy he never been to mainland China and he need to explaine whts going on there, ridiculous ahahahaha
March 21st, 2012 at 8:26 pm
anybody know which specific instruments is he short?
March 21st, 2012 at 9:22 pm
@lb11rb obviously, when you sell them you receive cash
March 21st, 2012 at 9:45 pm
@bunsh1ch1
when you borrow the shares, you subsequently sell them, waiting to buy them back. As you wait, you buy T-bills or whatever you deem liquid enough for your particular circumstances.
March 21st, 2012 at 9:57 pm
How do you earn interest on a short position?