Posted on 12/07/2011 3:30:08 AM PST by TigerLikesRooster
Short-seller Chanos: Moody's, S&P wrong on China
By Katya Wachtel
NEW YORK | Tue Dec 6, 2011 4:46pm EST
(Reuters) - Hedge fund manager James Chanos, who has been a long-time skeptic on the Chinese growth story, is sticking with his gloomy view of ratings agencies Moody's Corp (MCO.N) and Standard and Poor's, saying their rosy outlook on China's debt only bolsters his bearish bet.
The famed short-seller said he's puzzled by the readiness of S&P, a division of McGraw-Hill Companies Inc (MHP.N), to downgrade the sovereign debt of countries like the United States and much of Europe while continuing to give a nod of approval to China and its banks.
"The rating agencies are getting this one really wrong," Chanos, the founder and president of hedge fund Kynikos Associates, told the Reuters 2012 Investment Outlook Summit.
S&P earlier on Tuesday affirmed its long-term rating on China's sovereign debt at AA-minus, just one day after it threatened to downgrade 15 countries in the troubled euro zone, including that of Germany, Europe's biggest economy.
Moody's rates China at Aa3, with a positive outlook.
For at least a year now, Kynikos, with $6 billion under management, has been shorting shares of Moody's Investor Services and S&P parent McGraw-Hill.
(Excerpt) Read more at reuters.com ...
P!
What I did not know... S&P is McGraw hill? The publisher of many many textbooks. As in how much money invested in education??? I guess they don’t support any budget cutting that involves the dept of ed.
China is hiding a lot of debt off the books. Kind of like Corzine did at MF global.
Eventually it will implode. Question is who will implode first US with our socialist entitlements or China.
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