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China is a bubble and will crash in 9-12 months says Dr Marc Faber
Posted on 04 May 2010 with 1 comment from readers
The original Dr Doom, Dr Marc Faber says that the Chinese economy will slow and may crash within a year as the poor performance of the local stock market this year is predicting an end to the property bubble.
He thought the World Expo in Shanghai was not a particularly good omen citing a property bust that followed the 1873 World Exhibition in Vienna.
ArabianMoney has previously drawn a comparison between the Dubai stock market crash of 2006 and the property crash almost three years later. Money that would have gone into stocks went into real estate instead fuelling an unsustainable bubble. China appears to be close to a similar breaking point now.
Posted on 04 May 2010
Categories: Banking & Finance, Bond Markets, Global Economics, Investment Gurus, US Stocks, Video Channel
1 Comment posted by readers:
Actually Peter what he said was ““The Chinese economy is going to slow down regardless. It is more likely that we will even have a crash sometime in the next nine to 12 months.” which is quite a long way off from the banner headline.
I don’t necessarily disagree with your cogent thoughts on the region or his but there is a tendency to sensationalise everything. Faber’s comments open up the inevitable possibility that he could be seen to be right no matter what happens because unlike his trading positiions, he’s hedging