He told the audience:
I don’t think the markets are discounting what’s really happening in China...A rolling loan gathers no loss and that’s what’s been going on in China for the last few years.
China’s leaders are fully aware of the dangers its economy faces, Bass said, and they hope to slow growth in a measured fashion, including through the restructuring of its banking system. “The jury’s out whether or not they can do it,” he said. “We actually believe they might be able to do that and that GDP [growth] is just going to slow down a lot more than people expect.”
“I’m not saying it is a calamity, a disaster or it’s going to end badly for the world,” Bass said. “All I’m saying is China is slowing down a lot faster than people think, and you need to think about how to position your portfolio for this.”
It is very difficult to see how China gets out of this without a great crash. In the EPJ Daily Alert, I have been warning that China could be the greatest economic and financial crash ever.
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