Sunday, March 18, 2012

James Grant (Finally) Sounds the Warning Bells on China

A friend writes and reports that James Grant says China's situation is worse than S&L crisis in the  80's, & the U.S. banking crisis in 2007.

Actually, the developing financial crisis in China is probably the worst in recorded financial history. You not only have a distorted business cycle, but this is combined by massive centrally planned projects that have zero value.


  1. As a country they are big time savers and exporters(producers). Wouldn't this at least balance out their central planning.

  2. Which is extremely significant because they will want to spend money on bailing out their system instead of hoarding dollars and buying treasuries.

  3. Finally? He's been bearish on China for years.

    “In China, he seems to see the excesses, to the third and fourth power, that he’s been tilting against all these decades,” said Jim Grant, a longtime friend and the editor of Grant’s Interest Rate Observer, who is also bearish on China. “He homes in on the excesses of the markets and profits from them. That’s been his stock and trade.”

  4. I agree with Ben -- what's with the "Finally"? Grant's been down on China a for long time now. In fact, Barron's featured an interview with Grant last Sept., where he again stressed being bearish on China.