Chanos Has It Right....

Thomas Friedman should listen to this.

"The fun fact I'll give you is there is almost 70 billion sq. feet under construction right now in high rises, commercial, residential and light manufacturing. We estimate about 30 billion sq. feet is commercial, what we would consider is office space. That's a 5x5 cubicle for every man woman and child in China. They are building high rises in cities with already 15-20% vacancy rates, and those are the government's numbers. The real vacancy rates are higher... The Chinese banking system is the problem, it is loaded with bad debt...Our geostrategic position is a lot better than China. Keep in mind China imports almost all its essential materials... They send us stuff, we send them pieces of paper, who would you rather be."









I have voiced similar concerns with regards to China.

http://tradersutra.blogspot.com/2009/11/china-walking-around-like-elephant.html

http://tradersutra.blogspot.com/2009/08/more-on-china-bubble.html

http://tradersutra.blogspot.com/2009/08/chinese-market-tickticktick.html

http://tradersutra.blogspot.com/2009/08/global-rebalancing-is-happening.html