A couple of days ago, Short-sell Guru Jim Chanos called China “Dubai Times 1000” and predicted a crash in China. Another Jim, Jim Rogers
disagreed and called Jim Chanos did not know what he was talking about.
Who is right?
Yahoo! Finance Tech Ticker brought Marc Faber
to be judge.
Faber acknowledges there is excessive credit in China, but the oversupply of money has been used to build the infrastructure, education, and R&D, rather than consumed. And that is the difference between China and US.
Faber too is worried about the bubble burst in China, but he does not see it imminent. “ It is very difficult to pinpoint a day when China will implode, I don’t think it will happen right way”, he said.
But investors should worry, when China crashes, so will the commodity and other emerging markets.
Watch the Yahoo! Video:
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