Before China Crashes, This Is Going To Happen First
Jan. 3, 2011
SocGen’s Albert Edwards is the latest to predict an imminent crash in China.
Part of his reason for worry is that everyone is really bullish on China, ergo markets are setting up for trouble. To be fair, this isn’t really the case. Lots of folks have called for a China crash, including Jim Chanos, but also plenty of others.
The reasoning is straightforward enough: Go-go growth, a monster real estate boom, and cheap credit do tend to create a nasty hangover, when mixed.