Cassandra on China Real Estate Bubble
Still on Jim Chanos hypothesis of a China Real Estate bubble. He is warning that those who sell to China raw materials for capital investment like real estate should beware of a burst in that bubble.
So the likes of mining giants like Rio Tinto, BHP Billiton, Vale,Alcoa and other minnows like Fortescue,Xstrata will suffer if China buying comes to a standstill.
Cement makers,Steel makers,Glass makers, bulk-carriers shippers, middleman (eg. Olam,Noble,Glencore) and other various players benefitting from the huge investment bubble will face the music one day.
Here’s an Interesting quip from Chanos
“China has embraced capitalism to keep the socialist elites entrenched while, more lately in the west, we’ve embraced socialism to keep the capitalist elites entrenched.”
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