Posted on 09/30/2011 3:57:42 AM PDT by TigerLikesRooster
Chanos calls China syndrome
John Daly
Published Thursday, Sep. 29, 2011 2:56PM EDT
Last updated Thursday, Sep. 29, 2011 5:30PM EDT
China is in the midst of the biggest real estate bubble in human history—“Dubai in 2007 times 1,000.” And Sino-Forest, the less-than-meets-the-eye Canadian forestry play in China? That fits a pattern: Promoters “find a different investment hype, a story, to get people excited. In the 1990s, it was the Internet, and now it’s China. Unbridled growth.” More related to this story
Why should we believe this prophecy of imminent calamity in the market that we were all counting on to buoy us for decades to come? Well, Jim Chanos—who uttered both of those quotes—has a pretty good record in doomsaying. And in profiting from that doomsaying.
Chanos, 53, is the most renowned, or, if you prefer, notorious, short seller on Wall Street. He runs Kynikos Associates, the world’s largest investment fund devoted exclusively to shorting. It manages about $6-billion (all currency in U.S. dollars except where noted).
Chanos’s fattest, juiciest-looking target for the past several years has been China. Yes, China’s GDP is still expanding by about 9 per cent annually, but embarrassing cracks are appearing in the official high-growth façade, particularly the evidence of boom-time overbuilding of condos, offices and infrastructure.
Chanos sees himself as a sort of watchdog. But others see short sellers as the undomesticated type of canine: jackals who wait for the stragglers of capitalism to show the slightest weakness, so they can attack in a pack and run them to death, profiting obscenely in the process.
(Excerpt) Read more at theglobeandmail.com ...
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“But others see short sellers as the undomesticated type of canine: jackals who wait for the stragglers of capitalism to show the slightest weakness, so they can attack in a pack and run them to death, profiting obscenely in the process.”
Well said
Short sellers typically do the most due diligence and uncover many flaws in companies. They discovered Enron, for example.
Lot’s of distractions about China this week.
America first.
Can we start the trade war yet?
Survival of the fittest. What’s wrong with that?
bump.
Because its not survival of the fittest. A free market would let the consumer decide who is the fittest.
Instead you have these people who produce nothing except misery and destruction.
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