Jim Chanos Lengthy Interview: Chinese Real Estate is a bubble, not short India

I just found this, I believe the interview is from today and it has not went viral on the internet yet. Enjoy!

Legendary hedge fund manager Jim Chanos says India has a rule of law and a respect for contracts which is lacking in China. China has been relying on a property bubble to spur its GDP growth. Chanos says despite the Government’s recent actions to cool the bubble, investment in fixed assets as percentage of GDP has increased. The local municipalities are largely responsible for the continued speculation.’

Chanos is cautious on commodities since China’s construction boom is mostly the cause of the boom. Demand could fall off a cliff as the bubble bursts.

QE3 is making investors think that there will always be some entity to bail you out.

In his last lecture at Yale, Chanos says that if domestic companies kept their books the way the US Government did, they would be put in jail.

Officially Government debt was $1.3 trillion debt last year, but on an accrual basis it was actually north of $5 trillion. We have close to $60-70 trillion of debt. Bill Gross and Robert Rodriguez have stated similar numbers as Chanos.

See below for full video:

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