Jim Chanos

May 1 (Bloomberg) — Jim Chanos, founder of Kynikos Associates Ltd., talks about the importance of short selling to markets, his investment strategy, and the outlook for China’s economy and banking industry. He speaks with Stephanie Ruhle at the Milken Institute 2012 Global Conference in Los Angeles on Bloomberg Television’s “Street Smart.”

Chanos is short Petrobras (PBR), PC makers such as Dell as tablet makers gain share, the PC makers are mostly value traps.

He is short the Australian company, fortescue, which is heavily reliant on Chinese economy. Its an Iron Ore play which is trading at a high valuation.

His team is there all the time even though he has never been to China.

He is net long. Chinese banks have not been properly capitalized, and this is before the latest line of loans.

He reiterated that China should thank Greece and spain for diverting attention from China’s problems.