A Contrarian View on China
Contrarian investor James Chanos of Kynikos Associates gained fame by predicting corporate failures such as Enron and Tyco. Now, Mr. Chanos believes China could be headed for demise. As quoted in a recent New York Times article, Mr. Chanos says that China looks like "Dubai times 1,000 - or worse." Accordingly, the hyperstimulated economy, including unsustainable growth in the real estate market, is headed for a crash.
Mr. Chanos' views on China differ not only from accepted conventional wisdom, but also run against the opinion of such informed and successful investors as Jim Rogers. For more on this debate, please read the recent New York Times story.
Michael Auslin of the American Enterprise Institute also had insightful recent remarks on China, echoing the views expressed by Mr. Chanos. Please click here for further reading.