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:
My name is Ben C. and I am 2nd year MBA candidate at the Anderson School of Business at the University of California- Los Angeles. I have a BS in Economics from the Wharton School of Business at the University of Pennsylvania. Before coming to Anderson I worked as a generalist equity research analyst for Right Wall Capital, a long-short equity hedge fund located in New York City. Prior to working at Right Wall I worked as an analyst at Blue Ram Capital, another long-short equity hedge fund located in Rye Brook, NY. This past summer, I worked for West Coast Asset Management as a research analyst. West Coast, which was co-founded by Kinko’s founder Paul Orfalea, is run by well-known value investors Lance Helfert and Atticus Lowe.