One thing people always say that “I don’t want to short because it can go to infinite.” But I have seen much more 0 than infinite.
If China is going to crash, we came to China in 2009. What about the Chinese demand, there is a huge contribution from constructions. This cannot be right. 30 billion square feet of office building. They are building more. Property companies, miners, Chinese banks are all credit driven.
I have no doubt that Chinese government’s goal of 7.5% growth will be there. They will print it. The problem is the bad credit. If you get to the micro companies, it is even worse. If you dive deeper and deeper, it gets worse. You don’t own the production assets of the companies, you own a holding company. Many of them don’t even file financial statements.
Europe: in this case it is especially bad.