Top hedge fund investor predicts economic crash in China

In the opinion of James S. Chanos, a known contrarian investor who predicted the demise
of Enron, Tyco, Boston Market, some of the world's biggest banks and homebuilders, has a bleak economic outlook for China.

Mr. Chanos made one of the largest fortunes on Wall Street; he states that China's
hyperstimulated economy for a crash that will look like, "Dubai times 1,000 --- or worse."

As evidence he cites China's $586 billion dollar economic stimulus program, growing
Chinese consumption, and the "beefing up" Chinese exports. However, China's stimulus
package and aggressive bank lending created artificial demand, which may raise the risk of
nonperforming loans.

Mr. Chanos's focus is on excesses in the markets and China's unprecedented growth
is deceiving investors that China is over-producing "...goods and products that they will be unable to sell." Consequently, these asset bubbles are looming over the economy of the most populated nation on earth and, as we have already seen in our own housing market, there will be a bust.

Gordon G. Chang agrees with Chanos in his book entitled, "The Coming Collapse of China" by Random House publishers.

Yet other Wall Street power brokers have voiced their disagreement with Chanos, among therm are: Warren E. Buffet and Wilbur L. Ross Jr.





However,