Saying China might crash is like saying it might rain tomorrow. I see two big potential problems in China.
Corruption is common. Ordinarily, that would not seem to be a dangerous problem, until you think of the banking system. As recent events on Wall Street have shown, you can make a killing by taking crazy risks with banking. And you can destroy the economy too. The difference is that here in the USA, you get bailed out by the taxpayer, but in China you will get shot if you threaten to bring down their system, and the central authorities discover it before you can flee the country. Bribe the right people and they might look the other way. I think that happens a lot. It might someday add up to a critical mass of bad debts.
And risky bank loans can blow a real estate bubble anywhere. Sooner or later, they pop. Sound familiar?
The Chinese government controls a large chunk of the economy. Can that continue to work forever, or will problems of misallocation of resources develop and slow down growth? If so, when? I don’t know. If anyone out there figures that out, please let the world know. The Chinese people have a strong work ethic, but that alone, isn’t enough to assure economic success.
As I wrote here a while back, (before Mr. Faber) I wouldn’t be shocked if the Fed secretly bought stocks in a crisis. If you doubt that they could keep it secret, think of Howard Hughes. He built a huge ship to go get a sunken Russian submarine off the bottom of the Pacific. One of the ways that the real purpose of the ship was kept secret was to remind those in the know, that they would all be unemployed if the true purpose of the ship got out before they could attempt to raise the sub. If I were told to buy stocks by the Feds, I would sure keep my mouth shut. I would just do as I was told, collect the big bucks, which beats being out on the street in a financial collapse, and plan my retirement on the hills overlooking Los Angeles. The view of the city lights from the pool at night up there is fantastic, especially with the right company.
I sure hope people realize that investing in China is risky. Your investments aren’t protected by law like in Europe, North America or Australia. There is no rule of law. I remember an interview with a businessman who built a ketchup plant in China. Soon after he finished, his patents were stolen and the Chinese built their own ketchup plant. He had to sell out. The courts were hopeless and he left the country. It was not a happy TV interview. Things get really rough inside China, and your money might just disappear. I wouldn’t go over there and try to get it back. That is why the real experts tell you to diversify your investments.

are you specialized on the darkness of the economy, people, society or it s just a perception?