Jim Chanos: Adam Smith Will Get His Revenge In China

Jim Chanos

Photo: CNBC

Jim Chanos is on CNBC this morning, and he’s talking China.He’s still bearish, particularly on industrial commodities that China imports (iron ore, specifically).

Based on his data, there’s still a huge boom in condo development, and yet actual purchases have already flattened out, suggesting massive unsold inventory is already piling up.

As for ramifications of a crash, he argues that the US would be in relatively good shape and that Europe would be far worse off, given how much more they export to China.

And on this idea that the Chinese have cracked the code to figure out central planning: “Adam Smith is going to get his revenge in China.”

Click here for a guide to China’s real estate bubble >

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