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Marc Faber: China Will Implode Someday, But Not Right Way

January 13, 2010
David Merkel

guruek

80 followers
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:



About the author:

guruek
David J. Merkel, FSA, CFA, is the Chief Economist and Director of Research of Finacorp Securities. His specialty is looking at the interlinkages in the markets in order to understand individual markets better. He holds bachelor’s and master’s degrees from Johns Hopkins University. In his spare time, he takes care of his eight children with his wonderful wife Ruth.

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