What is truth?

Posts tagged ‘Maps and Views’

Why We Should All Be Very Skeptical on China

By Michael Pettis

I’m often referred to as a ‘China Bear’ and that’s a word I really hate. I’m not a China bear—I’m a skeptic. And, in some of the incredibly feverish statements we’ve heard in the press and among my former investment banking brethren about the prospects in China, as well as in some of the things we hear about the imminent collapse of China, I have to say that I find much of that to be very very questionable and frankly nonsense. There are some very very big problems that China faces and a lot of the long-term expectations that many of us have for China, whether it is that China will be the largest economy in the world in 5 years—I’ll take that bet, it won’t—or whether it’ll collapse in five years—I’ll also take that bet, it won’t. I think the truth is a little bit more boring—it’s somewhere in the middle.

full article here :http://www.financialsense.com/contributors/michael-pettis/2011/10/21/chinese-malinvestment-is-worse-than-most-people-think

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