Submitted by Ivo Karindi on Mon, 2010-12-13 09:44
Taxonomy terms:
Chanos says that the US will benefit most if there's a "slowdown" in China by not being overly dependent on China.
Says that the main problem is that real estate, being a 60% industry (out of GDP), is building for the richest percentage of population while the market seems to be saturating. Also the immigrant construction workers, who are in majority in cities, are far from able to afford what they are constructing.
An interesting and surprising detail - China's export industry is apparently only 5% of their economy, and is operating on very low margins. So if the yuan was higher and harmful to exports, the narrow profit margins will disappear completely.
