Faber Says Doom For China, But Not Right Away

Investor Jeff Chanos, who predicted the bust of Enron, recently created a flutter when he predicted that the Chinese economy is in the last stages of a bubble, and that a bust is just around the corner.

Jim Rogers, famed commodity bull and China bull, rubbished these arguments partly by invoking some correlation between predictive powers and spelling abilities. Jim Rogers, who is an ardent admirer of the Chinese economy, continues to believe that China as a country and commodities as an asset class are the best places to invest in the long term.

However the debate took another twist with the eternal pessimist Marc Faber, author of the best seller Doom, Boom, Gloom, predicting Doom for China, albeit not immediately. According to Commodity Online, Faber reportedly said that “there is excessive credit in China, but the oversupply of money has been used to build the infrastructure, education, and R&D, rather than consumed. And that is the difference between China and US.” He also added “The China bubble will not burst soon. I don’t see it imminent.”

Clearly this is one debate that will not die out very soon.