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:
About the author:
Shaun Rein is the Founder and Managing Director of the China Market Research Group (CMR). He is a columnist for BusinessWeek's Asia Insight column. He has been widely published, written about and quoted in newspapers worldwide including Forbes, the Harvard Business Review, Dow Jones' MarketWatch, TheStreet.com, Investor's Business Daily, IHT, Finance Asia, the Wall Street Journal, and Barron's. He is regularly interviewed for National Public Radio's Marketplace.