Trend #11 : The bubble phenomena continues. The bursting of the housing bubble in 2008, led by the sub-prime housing market in the U.S and Europe, devastated credit markets throughout the financially mature world. Fast forward two years later and the burst may come from one emerging market…China. Thanks to massive government stimulus, and excessive lending by government-owned banks.
Governments world-wide have been propping up ailing economies with endless stimulus, like those of the U.S, U.K, Europe, and other coordinated central banks. China too, basking in the glory of maintaining a growth rate despite the tumble of many in the developed world, is fueling that growth with massive stimulus and government support. Some argue that their run may be over, and their economy may come crashing to a halt, shaking investors and the like with a bursting bubble of their own.
For a complete list of trends see our Trends Forecast for 2010.
Published: January 7, 2010SHANGHAI — James S. Chanos built one of the largest fortunes on Wall Street by foreseeing the collapse of Enron and other highflying companies whose stories were too good to be true.
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Daniel Acker/Bloomberg NewsJames Chanos made his hedge fund fortune predicting problems at companies and shorting their stock.
Now Mr. Chanos is betting against China, and is promoting his view that the China miracle has blinded investors to the risks in that economy.
Now Mr. Chanos, a wealthy hedge fund investor, is working to bust the myth of the biggest conglomerate of all: China Inc.
