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China may well have a 'hard landing' amid credit bubble, says Marc Faber
THE Chinese economy may be headed for a "hard landing" as borrowers are taking on record amounts of debt to repay interest on their existing obligations, said Marc Faber, well-know as "Doctor Doom".
"I think that the next thing that will happen is that all the asset markets, like the Titanic, will crash," he told Bloomberg."We had a hard landing in the stock market already and we had a hard landing in commodities and we might have a hard landing in the economy," said Mr Faber, the publisher of the Gloom, Boom & Doom Report.
After a seven per cent sell off at the start of the year, China revived intervention to stop some of the world's biggest investors from fleeing its US$6.5 trillion stock market.
"How it will unwind, we don't know," Mr Faber told Bloomberg. "It could also happen through significant weakness in the economy and some sectors of the economy in China, like steel production, they already have experienced hard landing. My sense: I would rather be overly cautious on China than overly optimistic."
"I think that the next thing that will happen is that all the asset markets, like the Titanic, will crash," he told Bloomberg."We had a hard landing in the stock market already and we had a hard landing in commodities and we might have a hard landing in the economy," said Mr Faber, the publisher of the Gloom, Boom & Doom Report.
After a seven per cent sell off at the start of the year, China revived intervention to stop some of the world's biggest investors from fleeing its US$6.5 trillion stock market.
"How it will unwind, we don't know," Mr Faber told Bloomberg. "It could also happen through significant weakness in the economy and some sectors of the economy in China, like steel production, they already have experienced hard landing. My sense: I would rather be overly cautious on China than overly optimistic."
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