China is a "CRASH WAITING TO HAPPEN"!

China is a "CRASH WAITING TO HAPPEN"!

Posted in the China Forum

OCCUPY TIANNANMEN

Port Moody, Canada

#1 Jun 21, 2013
China is a ‘crash waiting to happen’

Laurence Fletcher, Reuters | 13/06/20 | Last Updated: 13/06/20 1:32 PM ET

Patrick Wolff of San Francisco-based hedge fund Grandmaster Capital says the country's growth now looks awful.

Former chess grandmaster-turned hedge fund manager Patrick Wolff is betting on a stock market crash in China, where he says corruption and bad debts have spiraled to dangerous levels.

China’s credit bubble unlike anything in modern history: Fitch
Fitch thinks the scale of Chinese credit is so massive that it can no longer grow out of its excesses. And the statistics are scary. Keep reading.
Speaking on the sidelines of the GAIM conference in Monaco this week, Wolff said investors were too focused on trying to work out when easy money policies will taper off in the United States and ignoring a looming correction in China.

“People are talking way too much about the Federal Reserve and not enough about China,” he said.“We’ve been saying that the U.S. is the safest place to invest, while China is a crash waiting to happen.”

He is short on Chinese stocks and generally long on U.S. equities.

Financial markets have sold off heavily in recent weeks on fears that U.S. quantitative easing – money printing to fund asset purchases – will end off sooner rather than later.

...
OCCUPY TIANNANMEN

Port Moody, Canada

#2 Jun 21, 2013
...

World Bank warns of shock to debt-laden emerging economies as global liquidity is withdrawn

However, Wolff, who is managing member of San Francisco-based Grandmaster Capital, said it was a “non-issue” as the U.S. Federal Reserve was “highly unlikely” to tighten monetary policy without evidence of the U.S. economy overheating.

He was speaking before Fed Chairman Ben Bernanke said on Wednesday the Fed could start to pare back its monthly purchases of U.S. Treasuries before the end of the year if the economic rally continues.

Instead, Wolff said investors should pay more attention to China, whose rampant growth over the past decade has helped support global growth and fueled an unsustainable boom in commodity prices, but which now “just looks awful.”

“China’s centrally planned economy inevitably means massive corruption and a massive misallocation of capital,” he said, pointing to increasing funding problems for Chinese companies.“Interbank lending rates have shot up and many companies are facing a cash crunch.”

Wolff, who was U.S. chess champion in 1992 and 1995 and at his peak ranked in the world top 50, is positive on U.S. stocks, which account for most of the stocks he owns, and short Chinese stocks. Shorting means betting on a lower price for a security in the future.

Wolff, who became a fund manager after reading Warren Buffett’s investor letters, said his confidence in the U.S. economy was based on its lower dependence on growth in other countries, as well as the end of the housing slump and the recapitalization of its banking system.

“We have been and remain structurally bullish on U.S. equities,” he said.“The kinds of companies that were massively overvalued 15 years ago have become good investments – blue-chip, large-cap, quality businesses. It’s technology companies but plenty of other companies too.”

He said he does not like stocks in the energy, materials, mining and industrials sector, which he says have outperformed in the last decade on the back of Chinese growth.

“These are exactly the wrong place to be looking,” Wolff said.

© Thomson Reuters 2013
OCCUPY TIANNANMEN

Port Moody, Canada

#3 Jun 21, 2013
CCP is CHINAs SHAME

Port Moody, Canada

#4 Jun 21, 2013
"China’s credit bubble unlike anything in modern history: Fitch
Fitch thinks the scale of Chinese credit is so massive that it can no longer grow out of its excesses. And the statistics are scary. Keep reading.

Speaking on the sidelines of the GAIM conference in Monaco this week, Wolff said investors were too focused on trying to work out when easy money policies will taper off in the United States and ignoring a looming correction in China.

“People are talking way too much about the Federal Reserve and not enough about China,” he said.“We’ve been saying that the U.S. is the safest place to invest, while China is a crash waiting to happen.”

Yes, it is only a question of WHEN!
OCCUPY TIANNANMEN

Port Moody, Canada

#5 Jun 21, 2013
"China: a weak reading on the purchasing managers' index survey for the country – a barometer of its manufacturing sector – was one of the factors that fed Thursday's decline.

Growth in the world's second-largest economy has long been expected to slow from the double-digit pace that was the norm before the world recession of 2008-09. But there are serious concerns about the health of China's banks, which are thought to be sitting on a growing pile of bad loans. "It's clear that a lot of banks are in an awful lot of trouble," said Mellor."

from;
http://www.guardian.co.uk/business/2013/may/2...
OCCUPY TIANNANMEN

Port Moody, Canada

#6 Jun 21, 2013
Also check out:

"Chinas Economy Is Freezing Up; How Freaked Out Should We Be?"

at:

http://www.washingtonpost.com/blogs/worldview...
give me your shoval

Lumberton, NC

#7 Jun 21, 2013
all alone here eh?
OVERTHROW the CCP PIGS

Port Moody, Canada

#8 Jun 21, 2013
give me your shoval wrote:
all alone here eh?
Yes, you are.
OVERTHROW the CCP PIGS

Port Moody, Canada

#9 Jun 21, 2013
Too WEAK to comment or too STUPID?

Your Chinese Communist Party Wu Mao "Mass Cowardice Maneuver" is clearly a dismal failure.

HA HA HA HA HA HA HA HA HA!

Very soon you CCP will be afraid to raise your heads out of the septic tanks you will be hiding in, as we both know!

Won't THAT be SWEET for China?
OVERTHROW the CCP PIGS

Port Moody, Canada

#10 Jun 21, 2013
give me your shoval wrote:
all alone here eh?
Come, come. Your CCP cowardice is embarassing to us both. Just snipe and run, and hope nobody will notice you have nothing at all to say, "Comrade"?

tsk, tsk, tsk.....

With ORGANIZED WEAKNESS like THAT, you better save that "shovel" for DIGGING THE GRAVE OF THE DYING CHINESE COMMUNIST PARTY, so I can DANCE ON IT AS I DANCED ON THE GRAVE OF THE COMMUNIST PARTY of the SOVIET UNION!

WEAK, WEAK, WEAK, you red scum thieves!

But FUNNY in your WEAKNESS!

HA HA HA HA HA HA HA HA!
give me your shoval

Lumberton, NC

#11 Jun 21, 2013
OVERTHROW the CCP PIGS wrote:
<quoted text>
Come, come. Your CCP cowardice is embarassing to us both. Just snipe and run, and hope nobody will notice you have nothing at all to say, "Comrade"?
tsk, tsk, tsk.....
With ORGANIZED WEAKNESS like THAT, you better save that "shovel" for DIGGING THE GRAVE OF THE DYING CHINESE COMMUNIST PARTY, so I can DANCE ON IT AS I DANCED ON THE GRAVE OF THE COMMUNIST PARTY of the SOVIET UNION!
WEAK, WEAK, WEAK, you red scum thieves!
But FUNNY in your WEAKNESS!
HA HA HA HA HA HA HA
and still nobody here gives you support. i guess they think your stupid pawn like i do.
give me your shoval

Lumberton, NC

#12 Jun 21, 2013
also i think you should stick to your own country. i remember reading something from privacy index talking about your country being a survaillence society and and rights groups saying how your starting to crack down on rights and dissent.
RayH

Guangzhou, China

#13 Jun 21, 2013
Mirolyuba: The only crash that happened is when your mom dropped you on your head at birth.
OVERTHROW the CCP PIGS

Surrey, Canada

#14 Jun 21, 2013
give me your shoval wrote:
also i think you should stick to your own country. i remember reading something from privacy index talking about your country being a survaillence society and and rights groups saying how your starting to crack down on rights and dissent.
So YOU TOO LEFT CCP CHINA to LIVE IN FREE DEMOCRATIC AMERICA because of the diseased shihthole of a dictatorship the Chinese Communist Party runs on the mainland?

I guess you VOTED WITH YOUR FEET, as MANY CHINESE HAVE DONE!

LUCKY YOU!

But why do you SPEW IDIOTIC CCP PROPAGANDA?

Do you need the CA$H that the CCP pays TRAITORS like YOU?
OVERTHROW the CCP PIGS

Surrey, Canada

#15 Jun 21, 2013
RayH wrote:
Mirolyuba: The only crash that happened is when your mom dropped you on your head at birth.
RayHole; Having lost every argument and been exposed as a traitor who endorses the mass-murder of Chinese, the only thing left for a CCP loser like you is crude Red Guard bullshiht.

We know, we know.......
OCCUPY TIANNANMEN

Surrey, Canada

#16 Jun 21, 2013
“China’s centrally planned economy inevitably means massive corruption and a massive misallocation of capital,” he said, pointing to increasing funding problems for Chinese companies.“Interbank lending rates have shot up and many companies are facing a cash crunch.”

So true!

The Chinese Communist Party needs to steal to pay its thug mercenaries!

Do you think traitors willing to massacre their own Chinese brothers and sisters come CHEAP?

Of course not! They must be RICHLY REWARDED and even SERENADED for their CRIMES AGAINST THE CHINESE PEOPLE!
OVERTHROW THE CCP PIGS

Surrey, Canada

#17 Jun 22, 2013
RayH wrote:
Mirolyuba: The only crash that happened is when your mom dropped you on your head at birth.
RayHole; Having lost every argument and been exposed as a traitor who endorses the mass-murder of Chinese, the only thing left for a CCP loser like you is crude Red Guard bullshiht.

We know, we know.......

I see by your rapid and spineless retreat and flaccid weakness that your cowardice is still in high gear and your gutless betrayal of China is "defended" only by panic and urine-soaked humiliation!

Same old "RayHole"!

HA HA HA HA HA HA HA HA!

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