Over the past few years Perma-bulls have focused primarily upon the expectation of insatiable demand in China. I believe that in the not too distant future, we will look back on these arguments the way we now look back on the tech-bull arguments of the late 90's, or the Japan-bull arguments of the late '80's.
Jim Chanos the influential short-seller/hedge fund manager is betting that China's economy is about to implode in a spectacular real estate bust. A lot of people are hoping that Chanos – who called Enron right – is wrong this time. See an excellent discussion of both sides of the China case in this article Chanos vs. China, and the following video segment.
(Hat tip: thanks Dazzo)
It is interesting to note that Chanos gets threats of physical harm from China bulls today the way that Robert Shiller received threats from stock investors in the late '90's when he wrote his book “Irrational Exuberance” pointing out that valuations were overblown.…hhhhhmmmm.
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