Monday, 29 November 2010

The Chinese bubble

It is becoming more and more likely that the next big bubble will burst in China:

Hedge fund manager Mark Hart bets on China as the next 'enormous credit bubble' to burst

Mark Hart, an American hedge fund manager who has made millions predicting the crises in US sub-prime market and European debt, has launched a fund to bet on the imminent implosion of China.

Mr Hart, who runs Corriente Advisors from Fort Worth Texas, has told potential investors in a presentation that China is in the "late stages of an enormous credit bubble".
When this bursts, the financier said he expects an "economic fall-out" that will be as "extraordinary as China's economic out-performance over the last decade".

Mr Hart, who launched a record performing sub-prime fund as early as 2006 and, in 2007, a fund that bet on a European debt crisis, told investors: "Complacency among market participants regarding China is eerily similar to the complacency exhibited prior to the United States sub-prime crisis and European sovereign debt crisis."

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