China Financial Bubble

China Financial Bubble

Hedge Fund Counsel Calls China 'Greatest Bubble in History'

The former general counsel to a hedge fund had a surprising comment on business in China.  James Rickard, formerly of Long-Term Capital Management LP, said that China is in the midst of the "greatest bubble in history with the most massive misallocation of wealth."
“As I see it, it is the greatest bubble in history with the most massive misallocation of wealth,” Rickards said at the Asset Allocation Summit Asia 2010 organized by Terrapinn Pte in Hong Kong yesterday. China “is a bubble waiting to burst.”
Rickards joins hedge fund manager Jim Chanos, Gloom, Boom & Doom publisher Marc Faber and Harvard University professor Kenneth Rogoff in warning of a potential crash in China’s economy. The government has raised banks’ reserve requirements twice this year after economic growth accelerated and property prices rallied.
China has pegged the yuan to the dollar since July 2008 to help exporters weather the global recession. The central bank buys dollars and sells its own currency to prevent the yuan strengthening, driving foreign-exchange reserves to a world- record $2.4 trillion as of December.  Source

Related to: China Financial Bubble

Tags: China Financial Bubble, Chinese bubble, financial bubble, hedge funds, hedge fund bubble, hedge funds, China bubble burst

Hedge Fund Videos | 30+ Free Videos on Hedge Funds