Sunday, September 26, 2010

James Chanos on Chinese Economy

James Chanos interview with CNBC

James S. Chanos is the founder Kynikos Associates LP. He manages $6.7 billion. He is one of the top 5 bears in the US. He is famous in holding his short positions for very long period. He made a name by shorting Enron in 2000. Obviously he talks his book; he has have so many interviews all over the media in last couple months on Chinese housing market. China has taken some preventing action to stop the bubble from bursting they hope by tightening the lending standard for second homes and their own version of bank stress test they could have soft landing, lets hope they get it right. If Chanos is right and Chinese economy tanks; we are in a big trouble. What would happen to the US treasury if China stops to buy them? What would happen to the US dollar? I don't even what to think about it. I hope we would not see it happens in our lifetime.

His fundamental analysis on Chinese real estate makes sense to me. Since June 2009 I have been thinking to short them, but technical look very strong therefore I'm going to hold until I see weakness in charts.