“There are some symptoms of a bubble building in China, with the increase in foreign exchange reserves, rapidly rising property prices. From here on, the China economy will slow down regardless. Whether it will crash this year or later, I don’t know.
If you believe the government can steer the economy like a car, that’s not my view. Government measures always lead to unintended consequences.
Excessive credit growth in January, and 11.7 percent increase in property prices in one month alone are danger signals. The lending rate in China should be at least twice as high as it is now.”
Related ETF`s: iShares FTSE/Xinhua China 25 Index (ETF) (Public, NYSE:FXI) and iShares MSCI Emerging Markets Indx (ETF) (Public, NYSE:EEM)
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world. Dr. Doom also trades currencies and commodity futures like Gold and Oil.
