China in Midst of ‘Greatest Bubble in History,’ Rickards Says
March 18, 2010
China is in the midst of “the
greatest bubble in history,” said James Rickards
,
former
general counsel of hedge fund Long-Term Capital Management LP. The Chinese central bank’s balance sheet resembles that of
a hedge fund buying dollars and short-selling the yuan, said
Rickards, now the senior managing director for market
intelligence at McLean, Virginia-based consulting firm Omnis Inc. “As I see it, it is the greatest bubble in history with
the most massive misallocation of wealth,” Rickards said at the
Asset Allocation Summit Asia 2010 organized by Terrapinn Pte in
Hong Kong yesterday. China “is a bubble waiting to burst.” Rickards joins hedge fund manager Jim Chanos,
Gloom, Boom &
Doom publisher Marc Faber and
Harvard University professor
Kenneth Rogoff
in warning of a potential crash in China’s
economy. The government has raised banks’ reserve requirements
twice this year after economic growth accelerated and property
prices rallied. read more>>>>>>>>>>>>