China, where the economy has expanded 10.1pc a year on average since 1978, is reminiscent of the housing market before credit default swaps allowed hedge funds to make bets against the entire market, according to Mr Zuckerman. China Seen As The Candidate For 'Next Catastrophe' -- The Telegraph
Beware the China bubble because until hedge funds have found a way of directly shorting the soaring economy it will remain unchecked, says Greg Zuckerman, author of The Greatest Trade Ever.
Mr Zuckerman's book was one of the first to reveal the billions in profits which hedge funds and banks from taking bets against the sub-prime market just before the housing bubble burst.
China, where the economy has expanded 10.1pc a year on average since 1978, is reminiscent of the housing market before credit default swaps allowed hedge funds to make bets against the entire market, according to Mr Zuckerman.
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My Comment: I have been hearing doom and gloom from economists on China's economy since the mid 1980s .... and they have all been wrong. While I am sure that with time there will be corrections and adjustments in the Chinese economy as it continues to expand .... my bigger worry is the U.S. and European economies. They are deeply in debt .... and are unwilling to address a fiscal crisis that everyone agrees will get worse if nothing is done.
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