China's Bubble Bursting: It's already happening

Very interesting. Thanks for the link Malthus.

Yes, but prices are back on the rise again...although i think that it is good that the Chinese government is being proactive about bursting the bubble. Any US leader who suggested such a step would be skewered IMO.

http://www.bloomberg.com/news/2011-09-18/china-august-home-prices-rise-in-all-cities-challenging-government-curbs.html

For our sake China's bubble doesn't burst. Can't imagine having a truly global recession where every country is buried by their debt.

I would be interested to see what the volumes are behind those rises in price. This would be the leading indicator, which I think is Chanos' point. Beijing at least is slowing down:

http://en.ec.com.cn/article/newsroom/newsroomindustry/201109/1162552_1.html

"In the three-day holiday of Mid-autumn Festival from Sept. 10 to 12, Beijing has seen only 407 contracts completed for residential apartments -- that's a 70-percent drop compared to the three-day holiday in May, and a 50-percent decline from the corresponding period last year ..."

china's economy will grow significantly in the near term. the population is creating such a demand for goods and services that the powers in charge are scared things are going to get completely out of control.

agree with hofo...having china's housing/credit bubble bust now or in the near future is the last thing we need. It will happen, but hopefully it does when some of these other pressures are relieved a bit more.

Slow downs in china are more critical.
When you become unemployed in china, you become homeless.
Social services in china are overrated.
Hungry Chinese are not docile.
Could get freaky.
They may need us to keep buying crap as much as we need to buy it.
Smells alot like the opium trade except it's the americas puffing the economic pipe.
Stoned on trips to the mall.
How else would we get our exercise or an orange Julius.

Last thing we 'need'. Why in the world would bubbles beget bubbles. Why do Chinese want food, gold, housing. And while we are at it why do the Greeks want food, gold and housing? Hmmm hmmmm hmmmm. .... Oh I know, cause we are ALL human? Oh shit I got double jeopardy q right!

Agree with falco, when the chinese get pissed, the 10k ruling class get wiped out plus 20mm die in the cross fire.

If china in the early 90's is any example, they have plenty of bullits and fear of using them

That's why Babs Corcoran says they're all buying in Manhattan - never a bubble here!

Hugh Hendry, the guy who has devoted a fund specifically to shorting China was up 22.5%. In August.

http://www.ft.com/intl/cms/s/0/14b63e54-e210-11e0-9915-00144feabdc0.html?ftcamp=rss#axzz1YcMyWO1D

Meanwhile, Fidelity's China Fund is down almost that much for the year.

>>That's why Babs Corcoran says they're all buying in Manhattan - never a bubble here!

remember... she's a blond

Anyone can be a blonde, with a big enough bottle.

good ole Hugh...hes fun to watch when he blasts those who go against his positions..he is usually right though

Chanos makes a great argument. Difficult to refute

Steve, that's true. I drink a big bottle of absolute, light brown on the outside, blond on the inside.

china's economy will grow significantly in the near term. the population is creating such a demand for goods and services that the powers in charge are scared things are going to get completely out of control.

Maybe yes, Maybe no
As Chanos points out its not immune to the world economy. The country is very dependent on exports and construction. Both can't be depended on.

FG - I'm a teetotaler. It's lost on me, but G-d bless.

And skol!

"The squeeze on China’s property market may be reaching a “tipping point” that drives growth lower just when exports are under threat from a global slowdown and investor confidence is plunging, said Zhang Zhiwei, Hong Kong-based chief China economist at Nomura Holdings Inc....

Funding problems are just “the tip of the iceberg” and “sharp declines in property sales and prices are likely in the next two to three months,” said Shen Jianguang, an economist at Mizuho Securities Asia Ltd. in Hong Kong."

http://www.bloomberg.com/news/2011-09-23/china-s-property-market-squeeze-is-nearing-a-tipping-point-nomura-says.html

stevehjx... which take out menu will you pick for tonite's dinner?

Chinese again? ya looking pale... throw on a thong and sunbath a little... oooppppsss... never mind. If you don't wanna look at your own body... well....

Chanos slams Morgan Stanley's Jim Roach and gives an economics lesson to Bloomberg reporter.

Nothing new here, but he does a great job debunking the idea that the Chinese consumer is suddenly going to spend tons of money.

http://www.youtube.com/watch?v=T20RZXwTQXQ

Can't spend what you don't have.

>Can't spend what you don't have.

borrow?

why not? us americans did exactly that. history repeats itself.

Sorry - I for one am off borrowing. It's nice not to have bills come due....

"Unpaid wages in China
Can’t pay, won’t pay
Companies’ cash is drying up, with dire consequences for their workers...

...A squeeze on bank lending has prompted some businesses short of cash to stop paying wages to blue-collar workers. Even the much-vaunted state sector is feeling the pinch..."

http://www.economist.com/node/21534838

China just got caught hacking into our satellites (I didn't even know hacking into a satellite was possible) and yet we trade with them. I would get a bunch of 16 year olds and have them hack into China's power grid, putting the whole nation into a black out.

The evidence as to their superiority is all around us.
I order Chinese food this evening and the delivery man was at my door in 6 minutes with my steaming hot delicious order.
As I tipped him handsomely for his services, our eyes met and I said, "how are you doing this"?
He said, "string theory" and vanished down the hallway.

Hey, maybe they're hacking US satellites to find out want I'm thinking about eating. Get a little jump on the competition.

falcogold1, don't you worry. America has a very effective weapon we've already started to use surreptitiously on the Chinese.
It's code-named Project Colonel, and the evidence can be "erased" by licking your fingers.

You mean they can intercept your dominos order and deliver an imitation dominos pizza before the real one arrives? Unreal!