Is China headed toward collapse? - Eamon Javers - POLITICO.com Tom Smith

The conventional wisdom in Washington and in most of the rest of the world is that the roaring Chinese economy is going to pull the global economy out of recession and back into growth. It’s China’s turn, the theory goes, as American consumers — who propelled the last global boom with their borrowing and spending ways — have begun to tighten their belts and increase savings rates.

via www.politico.com

Sounds plausible to me. I wish I had a billion dollars so I could short the China market.
In other news, for what very little it is worth, the Dow sure looks like it's in another bubble to me. I don't really have a model, just that up 29 percent since January makes no sense to me and the Fed is creating reserves at a pace heretofore unknown in the history of money. Just sayin. Maybe somehow some of that new money is finding its way into the equity market.

Comments

[athena]

You don't need a billion dollars to short China. Buy put options on a China index Exchange traded fund- ETF. Just get your timing right.

[dearieme]

The next crash will be so awful that shorting won't have paid because the counterparties will be bust.

[mike livingston]

I recommend a quick look at Simon Leys' 1970s book, "Chinese Shadows," for perspective on China. It never ceases to amaze me how otherwise sane people lose all perspective when they go over there. Plus ca change . . .