The next big hit to the economy is coming!
 

And it will not be in the US but we will be affected. It also depends on if you believe James Chanos too. He is the guy that forecast Enron's demise as well as other big companies like Tyco. His specialty is betting against companies he thinks cook their books and he is an expert at digging through financials to see what doesn't add up.

He is now betting that China is cooking their books and that the bubble in China is about to burst. He also claims their economic growth statistics are fudged too and that the Chinese government is over extended way more than we can conceive. All in all, he thinks China is a house of cards ready to fall.

I'm not sure if he is 100% right but it is hard not to listen to him based on his track record.

Reported on Yahoo today - "A newspaper reported that some Chinese banks were ordered to stop lending for the rest of January after exceeding credit limits."

Here is the Chanos article from the New York Post - http://www.nytimes.com/2010/01/08/bu.../08chanos.html

good, maybe we can buy our country back at a "firesale" rate.

noone is cooking the books better than the good ol usa, the entire market is being held up by gov pumping in cash,

The US economy has at least another five years of misery before it begins to crawl back to normal. And yeah, I agree, China is a house of cards waiting to fall.

I guess that depends if the banks have the cash or not... china is a hell of a lot stricter on bank lending, more than we still are today, so I simply don't see how they could fail when they have more cash than several major nations.

I agree the US still has a long way to go.

More from the Chanos article - "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."

oh dear!!

peter schiff has tons of his clients money invested in china, he also predicted lots of stuff that came true

lol who do you trsut

They pay about $500 per sq foot in a major city right now...more than doubled in one year. A crap apartment in NY City is about $600 a sq foot.

In the aspect of growth, China sky rocketed yes, but at the end of the day if the people didn't have cash/money/jobs to cover the loans, the banks wouldn't be giving them. It's not like here were banks gave clearly bad loans, to bad people, with borderline credit - that isn't happening in China like it did here.

My 2 cents at least... I straight up can't see them failing at this point, they may not be doing as good as they say, but I don't think they are losing anything.

Of course china is in trouble, you don't have to look hard...

its one thing to predict enron sitting in the USA, another thing to make such predictions about a closed off communist country. I dont know shit about china except we are losing the secret trade war with them, badly.

based on your thinking japan and others should of just printed more money

i agree its not easy to predict anything especially in china, you have peter schiff telling the whole world to put their money there asap

Too much growth too quick is just about impossible to sustain. Kinda like a controlled burn in a forest. If you are not on top of it and in control it becomes a wild fire and burns out of control till it runs out of forest.

That's how I see China, rapid out of control growth that cannot be sustained. which at some point will set them way back.. And if they do not clean up the hazardous materials they are putting in products that set back will be sooner than they think..

I think James Chanos is putting into words what many people already reckon..

Then who will buy U.S. Treasury bonds?

:disgust:disgust

They already announced a 30% decrease in exports in November, and were starting to gear alot of their stuff to the Chinese people rather then Americans, add that with the freeze on lending they announced and to me looks like it's already started falling.
The positive is maybe it will spark a few companies to start buying American again.

lol


Sabby:)

Be thankful your are not in Haiti.


Sabby:)

Thank you. You speak the truth:thumbsup

I am more worried about the guy that hijacked the airplane in Cancun a few months back.

When asked why he stated that an Earthquake was going to hit the Yucatan ( Cancun ) and it would be devastating, and that no one would listen to him.. Now hati is hit. Cali is hit and Central Mexico got hit the other day..

Not looking good.

Wait, I thought Walmart owned China?

You say cooking up the books.

Yeah, that's the thing. You can record expenses and revenues and assets and liabilities almost anyway you want it to look. It's hard to figure out the real value of a company.

Now, if you are talking about China - they have mastered the ancient art of secrecy and hiding. So, don't even try to figure out what the fuck they are doing.

AIG and GMC from all the money the gov't gave them, they will now own the country.

Increasingly the Fed. China (and the rest of the World) are no longer foolish enough to buy them.