Commie China economic bubble to crash

Now here's something I know absolutely nothing about, but the subject matter tickles my fancy:

As reported in New York times today by David Barboza (January 8, 2010, on page B1):

As most of the world bets on China to help lift the global economy out of recession, Mr. Chanos is warning that China’s hyperstimulated economy is headed for a crash, rather than the sustained boom that most economists predict. Its surging real estate sector, buoyed by a flood of speculative capital, looks like “Dubai times 1,000 — or worse,” he frets. He even suspects that Beijing is cooking its books, faking, among other things, its eye-popping growth rates of more than 8 percent.

“Bubbles are best identified by credit excesses, not valuation excesses,” he said in a recent appearance on CNBC. “And there’s no bigger credit excess than in China.” He is planning a speech later this month at the University of Oxford to drive home his point.

As America’s pre-eminent short-seller — he bets big money that companies’ strategies will fail — Mr. Chanos’s narrative runs counter to the prevailing wisdom on China. Most economists and governments expect Chinese growth momentum to continue this year, buoyed by what remains of a $586 billion government stimulus program that began last year, meant to lift exports and consumption among Chinese consumers.

This is very interesting. Especially seeing that George Soros's partner totally disagree by insisting that “China is not in a bubble.” Now the game is set. I am solidly on Mr. Chanos's side. Let's just find a ring side seat and wait and see what's going to happen. Let the Commie China economic crash to begin. Should be very very interesting!